GK repayment plan faces cash flow crisis
View(s):Chief Justice Mohan Peiris’s action to step down from the Golden Key (GK) case with the CIESOT order pending has affected GK company’s cash inflow of around Rs.5.4 billion from the intended sale of CIESOT shares in Ceylinco Insurance PLC, a director of the company Dushanthi Hapugoda said.
The company had planned to raise another sum of Rs. 7.32 billion through the seizure and sale of assets of former GK directors including CIESOT shares to complete the final phase of paying 41 per cent of deposits to disgruntled depositors, she revealed.The Supreme Court was about to issue the final order sanctioning the liquidation of these assets, she said adding that now the sudden decision of the Chief Justice to withdraw from the case has hindered the company’s plan of launching the fourth phase of the payment plan in September.
Answering allegations that the company has failed to pay multiple card holders, she said that the Central Bank has approved the payment of 293 such depositors and a sum of Rs.29 million has been allocated for under the third phase.