Financial Times

Hotel Developers to be wound up?
Hotel Developers (Pvt) Ltd, owners of the Colombo Hilton, is contemplating a financial restructuring of the hotel with a possible conversion of long-term debt into equity on the completion of its court case, officials said.

The case which has been pending for some time is coming up for hearing once again tomorrow before the Supreme Court. The company informed the Colombo Stock Exchange (CSE) last week that beneficial new financial terms with Hilton International are under negotiation at present. Further the company has intimated that if the case does not conclude favourably, it may face an eventuality of being wound up.

The majority shareholding of Hotel Developers is to be made available on the CSE for sale after settlement of the pending litigations. Business tycoon Harry Jayewardene is said to be among those interested in the Hilton stake.

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