NLH Holdings (NLH), Sri Lanka has received the green light to restructure and settle liabilities of both Ceylinco’s Finance and Guarantee Real Estate Company (FGRECL) and Finance and Guarantee Property Developers (FGPDL).
The five member Board that was appointed by the Supreme Court approved NLH (from the three short listed companies) and has given the green light to the restructuring proposal presented by NLH Holdings (NLH).
The main investor, Chairman, NLH Holdings (NLH), Don Duminda Mayadunna, told Daily News Business that the five depositors’ associations formed to look after the interests of both these defunct companies too have given the green light for NLH to take over FGRECL and FGPDL.
“We have taken a decision to completely settle the 1,500 depositor’s claims for Rs. 7 billion by way of offering them cash and sharers. This will start from end of December 2018 and would be completed in less than two years.”
The Central Bank had proposed that depositors of FGRECL and FGPDL shall be eligible to receive a minimum of 61% and 51% respectively on the principal outstanding on deposits. “We are a financially stable company and NLH holds an asset base of Rs. 3 billion of which 25% is comprised of cash and cash equivalents and liquid assets,” he said.
“Our company has previously executed a turn-around strategy under similar circumstances, undertaking a similar approach, objective, and process outlined herein and we already have restructure four of the Ceylinco companies, that included NLH Holdings Pvt Ltd, Nations Building Society Ltd (The only Building Society registered under the National Housing Act) Ceyhomes Credit & Investments Pvt Ltd and Ceylinco Prosperity Pvt Ltd.
After taking over these four companies, 42 out of 60 installments under the agreed repayment amounts have been returned to depositors.
“Over Rs. 1 billion in an additional pool of shareholder capital is available to invest into target mergers and acquisitions.”
“NLH will be forming a JV with ZRA Holdings Pvt. Ltd, which will be listed shortly to carry out the investment and restructuring of FGRECL and FGPDL.
Pls inform the status of above investment.
ReplyDeleteLong outstanding matter.
Tks.