Crisis-hit Dankotuwa Porcelain PLC (DPL) directors will meet on Wednesday to discuss liquidation options for the second time in a week, the Business Times learns.
The company’s directors last Wednesday discussed DPL’s financial situation as it is plagued by cash flow and debt servicing issues, and was legally advised that they should present a resolution to liquidate the firm. However it was defeated by a majority vote. “This was because the Japanese directors wanted some more time to explore the situation and see whether the two unions will agree to a different collective agreement,” a source told the Business Times. He said that DPL is also exploring fresh investment options in the company.
The company had a workers strike over Cost of Living allowance in 2008 and issues over wages, and these problems have continued to persist the company. The source said that under Section 219 of the Companies’ Act the directors have little choice but to liquidate, because the company cannot meet its liabilities and if this situation drags on, the personal assets of the director board will also be used to service the debts of the company.
He said that another resolution will be presented on Wednesday and it is to be passed if all options fail.