Agalawatte Plantations will take legal action against the previous management shortly to recover the funds misappropriated during their tenure of office.
In a circular to shareholders, the current director board said that any such funds recovered will be utilised to settle the outstanding balances of the stake holders.
The accumulated losses of the company based on the draft financial statements as at December 31,2016 is expected to be over Rs 1.2 billion.
The total outstanding statutory liabilities, amounts due to banks and other financial institutions and the amounts due to trade and other creditors as at December 31, 2016 is expected to be over Rs 3.3 billion.
“This catastrophic situation faced by the company had arisen as a direct result of misappropriation of company’s assets by the previous management.” “It’s also pure negligence in maintaining the state owned assets leased to the company.”
Therefore, the Directors are proposing the following restructuring plan to resurrect the company, bearing in mind their responsibility for the livelihood of the 5,000 employees.
The current Board further said that they are committed to execute the above proposals if all the stakeholders are agreeable to this plan.
This proposal has been accepted by D R Investment private limited, the majority shareholder of the company by whom a mandatory offer is being madeto the shareholders.
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