The Supreme Court on Tuesday – after months of discussion – accepted a repayment plan for struggling Golden Key (GK-Ceylinco) investors in which 3,863 depositors will receive 75 % of their money within three months.
When the GK case came up before a court bench headed by Justice Shirani Tilakawardena, the 3-member committee of accountants mandated to prepare a repayment plan submitted their proposals for depositors with deposits of Rs 1 million and below, of Rs 2 million and below, and above that. There are a total of 8,200 depositors affected by the collapse of the Ceylinco-controlled GK last year, which triggered a run in many Ceylinco finance and deposit-collecting companies.
Lawyers for GK requested time to consult their clients over the plan but the court said the plan is effective. It would however be mentioned in court on October 13, the date on which the replayments are effective.
According to the plan, depositors of Rs 1 million and below will receive 75 % of their cash within three months from October 13, depositors of Rs 2 million and below will receive 75 % of the deposit within six months and above Rs 2 million – 75 % within a year.
Attorney General Mohan Pieris presenting the re-payment plan before the Supreme Court disclosed that Rs 110 million could be transferred to the GK dedicated fund set up under the direction of the court to pay the depositors, from the savings of the respondents, Lalith and Sicille Kotelawala.
He added that another sum of Rs 240 million could be credited to the fund from the consolidated accounts and Rs. 2.6 billion could be raised by selling the assets belonging to the Ceylinco Consolidated Limited.
The Bench comprising Justice Ms. Shiranee Thilakawardane, Justice K. Sripavan and Justice P.A. Ratnayake granted time till October 13 to express the concerns of the respondents on the re-payment plan considering a request made by President’s Counsel Romesh de Silva appearing for respondent Ceylinco Group Chairman Lalith Kotelawala stating that he had not received a copy of the plan . |
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