Business Times

Dankotuwa directors meet on Wednesday on liquidation issue

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.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Controversy over costs and revenue of IIFA
BOI funds transfer to Treasury, agreements being reviewed
Asiri Hospitals eyeing Bangladesh
e-Sri Lankans assist in building a unique global chip
Dankotuwa directors meet on Wednesday on liquidation issue
Motorcycle prices soon up by Rs. 6000
ODEL raises capital, expands
Economic lessons from Mahathir
Lessons from the Maldives
Sri Lanka's satellite: Lost in space?
Debating CEPA or destroying the debaters?
South Asia does well in post-financial crisis recovery
DCSL annual profit down 30%, quarterly profit down 49%
Sri Lanka among the safest places in the world - PM
Ampara farmers rejuvenated by rehabilitated irrigation canal
Lankan Minister predicts booming economy for Sri Lanka with north-east contribution
Kilinochchi businessmen limited credit due to lack of collateral
John Keells celebrates World Environment Day
DFCC Bank profits rise
Tax reduction will cause problems to the state
CEOs want HR to demonstrate high enthusiasm for the business
Mahathir Mohamad makes his mark in Sri Lanka
Dankotuwa eyes domestic market for future growth
Ceylon Guardian Group reports Rs.1.6 mln profit
CB's loans more than Rs 3 billion to the North
Sri Lanka Insurance launches door-to-door service
CILT enters the CCC umbrella
CMA panel discussion on “Sustainable Business”
Finlay’s Estates gets Rainforest Certification
CSE responds to SEC on LOLC's stockbroker licence
Drilling starts next year on 3 oil wells
Hemas will see FMCG, leisure and power sectors boost profits
CBSL appoints sovereign rating committee
Struggling real estate, property development to return as key investment avenues
NCE targets US$20 billion in exports by 2020
Full service virtual ad agency triadhot.com launched globally
LOLC profits up as cost of sales falls
ADB provides US$ 212.8 mln for North-East development
‘We believe, We achieve, We win’ - new theme for SLIM
Dialog TV partners Orange Electric for customer education drive
CMA Accounting Summit - Regional Heads meet in Colombo
Derivatives demystified

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution