The Finance Company (TFC) is now making structural changes strengthening internal audit controls and ensuring credible policies to provide their customers with more concessions and benefits. Outlining the restructuring process, the newly appointed chairman of the company Preethi Jayawardena said that measures will be taken to obtain fresh injection of capital and restructure the company’s bank borrowings amounting to over Rs. 1.5 billion.
The new shareholder's capital inflow stands at Rs. 3.6 billion, which is 25% of the total capital, he added. The company had borrowed from commercial banks at interest as high as 18% to 20% earlier. But the company is seeking assistance from the Central Bank to find some redress on tackling the debt issue, he said.
Mr. Jayawardena noted that the company is in a position to repay its depositors, on maturity of their deposits as and when they request it. Elaborating on the repayment process, CEO Kamal Yatawara said the company was paying back depositors on a case-by-case basis and priority will be given to senior citizens and those who need money to meet immediate education and health needs. The company has already paid Rs. 4.5 billion to depositors while Rs. 2 billion was paid last year.
The Finance Company announced the new Board of Directors, consisting of individuals from different backgrounds and only four members from the initial board at a press conference held in Colombo recently. The new chairman is Preethi Jayawardena while Kamal Yatawara remains Director / CEO. Ajith Devasurendra, Managing Director of Taprobane Holdings; P. Nadaraja, CEO of the Seylan Development PLC and Anura Fernando, Managing Director of East Tech Consultants have also been appointed to the TFC director board.
Meanwhile high networth individual Dr. T. Senthilverl who purchased a block of TFC shares close to a value of Rs. 495 million from the recently concluded IPO has also been included as a board member. Before the inclusion of the new members, the TFC boar only had four members. It was formerly a part of the fallen Ceylinco Group and had 16 board members during that time. TFC recently raised Rs. 1..6 billion via an IPO to inject new working capital to the company.
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