Firms interested in failed Ferntea

With the liquidation process of Ferntea Ltd underway, the company is being looked at by some interested parties, according to sources close to the company. The sources said that two high networth individuals, have approached the company which has a 30 year-old tea exporting business, through two large stock brokering firms.

Richard E Zinkiewicz, Group Director of Finance for QI Ltd, holding company of Suntex, which is a majority shareholder of Fern Tea, in a statement said they were open to negotiations and offers.

He said Suntex has assured staff and workers of the company that salaries will be paid for the month of October despite the ongoing liquidation process. On October 23, the company’s two major shareholders (Suntex Ltd and Carmel Consolidated) agreed in the Colombo District Court to wind up affairs, a decision that came after a year-long dispute between the two parties.

“The present majority shareholder, Suntex (holding 53 per cent) was forced to take control from the previous majority, citing bad management and inefficient use of funds infused, to grow the business,” Zinkiewicz said. However, Anura Fernando, who served as Chairman for approximately a year, resigned from the position last week, citing pressures from the other major shareholder, Carmel Consolidated in the form of legal-suits which have demoralized staff and increased litigation fees.

Turkish Delight

In a related move Turkish buyer Mehmet Peltek, who accused Ferntea of cheating him from a consignment of tea owed to him, complained to the CID of fraud. He said Ferntea owed him US$110,000 which he could not recover till August. The CID had directed Zaheer Merchant, representing GoldQuest and Ferntea Director Chrisantha Perera, to pay these dues to the complainant. This was done through a 30-day post dated cheque given to Peltek who was present in Colombo.