JAT to buy troubled Touchwood
View(s):Touchwood Investments will be bought by JAT Holdings and for this purpose is currently in negotiation with the court appointed liquidator.
Local properties amounting to over 2000 acres will be bought by Esteem Plantations company, part of the JAT Group following a public announcement requesting anyone interested in buying this failed company, Liquidator of Touchwood Investments Sudath Kumar told the Business Times. Currently the two parties are negotiating certain terms like ownership of the local properties and how the profits from the produce on the lands should be returned to the customers.
Lawyers are working on the buying price which is expected to be announced at the next hearing of the case in the Commercial High Court on August 26, Mr. Kumar said. Following approval from court, it was noted that a public meeting of investors would be called to inform them of the terms and conditions of the agreement entered into with JAT Holdings. JAT Holdings was the company carrying out maintenance of the properties when it was owned by the Maloneys’ but continued to do so which was then challenged in court by the liquidator following which a settlement had been reached to purchase the company.
Touchwood’s total amount in assets as stated in a recent stock exchange filing at the time of liquidation was Rs. 694, 950, 527.17 in addition to cash available in the bank at Rs.105, 720 and investment in shares amounted to through the Deraniyagala Tea Estate at over Rs.232.9 million, Farm Grow (Pvt) Ltd at Rs.5 million, Twood Flooring at Rs.14.7 million Agricultural Free hold land with trees at Rs.335 million unpaid calls receivables at Rs.2.4 million. Receivables from Green Agriculture detailed as amounting to from Venture (Pvt) Ltd at Rs.14 million and Annual Maintenance fee receivable at Rs.90.6 million. The company liabilities were detailed as amounting to a total of over Rs.1 billion, the documents stated. -(SD)