Entrust owes Rs. 9 bln to clients
The liabilities in the bond market by Entrust Securities, a primary market dealer under-fire since early this year, is at Rs. 9 billion and not Rs. 5 billion as earlier estimated, latest data revealed. Informed sources told the Business Times that Entrust has some Rs. 5.3 billion that it owes to just three institutions – and the two on top of the list are the Central Bank (CB) and the Ceylon Electricity Board (CEB). “Entrust owes Rs. 2.2 billion to CB and Rs. 1.8 billion to CEB,” a source told the Business Times adding that Arpico came in at the third slot on Entrust’s list of liabilities with Rs. 1.3 billion.
All others are hovering around Rs. 500 million each and all together total around Rs. 9 billion. The CB took over the crisis-hit firm in January after it was revealed that liabilities far exceeded assets. Shamir Mendis, a former director at Delmege Group, has sued Entrust for Rs. 100 million in the High Court. “There are others who are also planning this,” a source close to Mr. Mendis told the Business Times.”We will find out the exact position in a few months time,” he added.