Financial Times

Fortress Resorts losses mount, new luxury hotel ready by December
The Fortress Resorts Ltd., controlled by investor Dhammika Perera, which has racked up accumulated losses of Rs 135 million, is to have its new luxury resort, La Forteresse, managed by Per Aquum Resorts and Spas by December this year.

Chairman Chandra Wickramasinghe told shareholders that the firm has contracted reputed foreign interior decorators to do up the boutique-style luxury resort hotel to reflect the Dutch era in the island and had come up with what he called a few “breath-taking ideas”.

Per Aquum Resorts and Spas is promoting the hotel at international fairs, he said in the company’s annual report for the year ended March 31, 2005.
The company made a rights issue of 20.7 million ordinary shares of Rs 10 each on May 11 in the proportion of two new shares of Rs 10 each for every three shares held. The proceeds are to be used for the construction of the hotel, La Forteresse.

The resort’s main shareholder is Dhammika Perera, who has almost 21 percent through his Vallibel Leisure firm, along with other stakes, with MJF Holdings of Dilmah tea fame as the second biggest shareholder.

The Fortress Resorts incurred a net loss of Rs 911,000 during the year.
The company was not in operation during the year but the directors have made an assessment of the company’s ability to continue as a going concern and do not intend to either liquidate or cease trading.

Loans amounting to Rs 12 million were written off by Hatton National Bank during the year. HNB has waived off principal and interest balances of loans outstanding amounting to Rs 28 million for a total payment of Rs 16 million.

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