Business Times

Depositors and former directors endorse GKCC alternative re- payment plan

By Bandula Sirimanna

Members of GKCC depositors associations and former directors of the defunct Golden Key Credit Card Company Ltd (GKCC), have endorsed an alternative re-payment plan aimed at finding redress for struggling depositors, after almost two years.

An agreement on accepting the plan was signed in Colombo on Friday by office bearers of the two associations, former directors of GKCC including Lalith Kotelawela and lawyers appearing for depositors in the GK Court cases, President of the Golden Key Depositors Society Anusha Emmert told the Business Times. The repayment plan will be presented before the Supreme Court for its endorsement on Thursday, January 2, she said. These documents will be filed tomorrow.

According to this repayment plan, all deposits at the rate of between 25% to 100% will be repaid within four years at 6% interest considering the amount and the period of deposits. Depositors who made deposits shortly before the collapse of the company will be given priority under the repayment plan, sources added. Ms Emmert said they held meetings in Colombo, Kandy and several other areas to create awareness on this plan among depositors and around 2,400 depositors have given their consent by signing the documents. She said that this was the first time the former GK directors have stepped in to find some redress to them.

However several depositors said that they were against the alternative payment plan, as it fails to treat all depositors alike. It is only beneficial for persons who deposited money after 2004, four years before the collapse of GKCC, a disheartened depositor said adding that people who have put their money before 2004 will get only 25% of their capital.

When asked to clarify this issue, Ms Emmert said that only 3% of depositors are in this category and these persons had received high interest and it was actually a rebate according to the agreement they entered with the GKCC. On the other hand no one can expect the full repayment of capital from a collapsed company, she said.

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