Now People’s Leasing to rescue crisis-hit CIFL
View(s):The Central Bank (CB) last Monday appointed People’s Leasing and Finance PLC as the new managing agent of the crisis-hit Central Investments and Finance PLC (CIFL), after its new investors, the Maloney-led Touchwood Group failed to make capital infusion of US $ 12 million on or before the stipulated date, a senior CB official said.
CIFL has been hit by a liquidity crisis where payments were delayed to depositors, and the CB after discussions agreed to the infusion of foreign cash by the owners of Touchwood (Maloney couple) and subsequent take over.
Touchwood also took over management of the company making major changes to the board of directors including a new chairman. The changes took effect from 2nd May.
Three new board members, Roscoe Melony, Swarna J. Meloney and Dulan Hettiarachchi were appointed to the board of the company. K.A.L. Rupasinghe resigned from his position as Chairman and was replaced by Mr. Melony.
H.M. Ekanayake, CB Director – Department of Supervision of Non-Bank Financial Institutions, told the Business Times that the present board of directors will remain as it is and they should take the responsibility of reviving the company.
He pointed out that no director will be allowed to resign and even Mr. Rupasinghe who continues as a director, has been directed to remain on the board.
In a statement on Monday, the CB said People’s Leasing & Finance has been appointed Managing Agent of CIFL “considering the prevailing liquidity and management issues of the CIFL”.
It said the Managing Agent will be expected to improve the financial status of CIFL within a reasonable period of time, and the CB will closely monitor the progress.
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