The Colombo District Court action against Finance & Guarantee Co (F&G), a registered finance company now controlled by the Union Bank goes to trial on January 13. In this case the plaintiffs maintain they placed deposits of over two million rupees which the company solicited. The company then defaulted pleading late notice of upliftment, renewed the deposits for a further year, without notice to the depositors and once again defaulted maturity payment in 2011, plaintiffs alleged.
With a new strategic direction and expansion plan in place, F&G commenced business operations under the new management of the Union Bank on November 24, Union Bank officials said. The bank together with an international foreign investment Fund ShoreCap acquired over 98 % of the voting shares of the F&G and infused new capital to resurrect one of Sri Lanka's oldest finance companies. |
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