Over 4,000 hapless depositors of failed Ceylinco companies, F & G Real Estate Company, (F&GRE) and F&G Property Developers Private Company (F&GPD) have been given a lifeline with the establishment of two Trusts to protect the assets and secure their interest.
Two boards of trustees comprising seven members each for the two companies have been appointed and the members signed the documents at Fingara Sports club in Rattanapitiya, Boralesgamuwa on Thursday. The Supreme Court, having considered the representations made on behalf of depositors, granted approval to form separate Trusts at F&GPD and F&GRE.
The assets of two failed companies are being transferred to these funds for the purpose of making repayment for depositors while directors of these companies including Deputy Chairmen Mervyn Jayasinghe signed deeds to transfer their personal assets to the funds, M.A Chandra Nalini , a member of the Board of Trustees told the Business Times. She said that they plan to repay the depositors within two years after selling the assets. But she said that everything will depend on the time frame taken to sell assets.
The Court issued the order to set up the Trusts by considering the fundamental rights petition filed by the Depositors Association of F & G Company against the management of these companies.
More than 1,700 people have deposited money in the F & G Real Estate while 2,500 people have invested in F & G Property Developers with total deposits exceeding Rs 7.8 billion.
The board of trustees of the F&GPD are A. Sarath de Silva, former CEO - Bank of Ceylon, S.E. Mayadunne - former Auditor General, Upali Jayanetthi - former Tax Commissioner, S.N.Wijepala - former Government Chief Valuer, Ravi Algama – lawyer, Neelani Goonatilake – President, F&G Depositors Association and M.A.Chandra Nalini - committee member, F&G Depositors Association. The board of trustees of the F&GRE comprise five members of the F&GPD Trust along with Lionel Katuwawala, a former senior Central Bank officer and P.D. Nesakumar. |
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