Creditors of bankrupt Touchwood Investments have been called for a February 8 meeting to vote on how they could get back their dues. A meeting of all the creditors of mahogany, vanilla and sandalwood plantations will be held at 3.00pm at the BMICH, Touchwood Liquidator Sudath Kumar told the Business Times on Monday. However investors [...]

The Sunday Times Sri Lanka

Touchwood investors to vote on two options

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Creditors of bankrupt Touchwood Investments have been called for a February 8 meeting to vote on how they could get back their dues.

A meeting of all the creditors of mahogany, vanilla and sandalwood plantations will be held at 3.00pm at the BMICH, Touchwood Liquidator Sudath Kumar told the Business Times on Monday.

However investors of two Touchwood plantations in Bomaragala and Ihalakanda in Ratnapura have not been called since their agreements were of a different nature.

He noted that since Touchwood does not have any building assets they would be looking at dispersing the money to the creditors based on the land and its harvest. The liquidator is currently looking at two options one of which is for investors to buy the properties freehold since they are the owners of land and out of that money the company could settle the liabilities.

The other option is to appoint a new company to carry out maintenance of the lands and one year later to give the dues from the crop to the investors. But based on the conditions in the original agreement entered into by the investors and Touchwood, the investors would have to hand back the property to the company. Subsequently the lands would be sold to a new investor, the liquidator said.  - (SD)

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