In line with the financial relief package announced by the Government to revive the tourism industry in the aftermath of April 21, 2019 attack and based on the request made by several subsidiary companies of Ceylon Hotels Corporation PLC, the following banks offered a capital and interest moratorium on the existing term loans and overdrafts.
Accordingly, Corporate Guarantees were issued by the Ceylon Hotels Corporation PLC to Cargills Bank PLC on behalf of United Hotels Company Limited, a subsidiary company of Ceylon Hotels Corporation PLC amounting to US$ 120,000 and Rs. 52 million while, another corporate guarantee was issued to Commercial Bank PLC on behalf of The Kandy Hotels Co. (1938) PLC, another subsidiary company of Ceylon Hotels Corporation PLC, amounting to Rs. 14 million, according to a Colombo Stock Exchange filing.
Furthermore, a corporate guarantee was issued by Ceylon Hotels Corporation PLC to Sampath Bank PLC on behalf of The Kandy Hotels Co. (1938) PLC (subsidiary company of Ceylon Hotels Corporation PLC) amounting to Rs.595.5 million by cancelling the existing guarantee of Rs 600 million. Accordingly, the aggregate value of the corporate guarantees given by Ceylon Hotels Corporation PLC to its subsidiaries exceeds 20% of the net worth of the entity as per the latest balance sheet of the company.
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