Rajan Asirwatham jumps out of a sinking ship?

Senior business leader and top professional Rajan Asirwatham has resigned from the Boards of LOLC Plc and Brown and Company.

He was serving these Boards as a Non-Executive Independent Director. His resignation is yet to be announced by the respective companies and a confirmation is expected shortly.

Asirwatham, who was appointed to the LOLC Board in November 2008, headed its Audit Committee as well as the Integrated Risk Management Committee.
http://www.ft.lk/2012/05/09/asirwatham-quits-lolc-browns-boards/

Rajan seems to have jumped out of the Ship! LOLC and Browns sinking ships?

Rajan Asirwatham resigns
May 09, 2012 (LBT) - Senior business leader and top professional Rajan Asirwatham has resigned from the Boards of LOLC Plc and Brown and Company. He was serving these Boards as a Non-Executive Independent Director. His resignation is yet to be announced by the respective companies and a confirmation is expected shortly .

Asirwatham, who was appointed to the LOLC Board in November 2008, headed its Audit Committee as well as the Integrated Risk Management Committee.

Resignation Clarriefied
May 09, 2012 (LBT) - Senior business leader and top professional Rajan Asirwatham who resigned from the Boards of LOLC Plc and Brown and Company clarified to LBT about his resignation.

According to Asirwathama he had resigned since it is due to conflict of interest he being in the LOLC and Browns Board when LOLC and Browns lead subsidiary Browns Investments PLC is negotiating a lease agreement with regards to the Excel World property in Colombo 10 which is owned by the Church of Ceylon.

"I am one of the seven long standing Board of Trustees of the Church of Ceylon. And in this case Church of Ceylon is the lessor and LOLC related Browns group is the lessee" Asirwatham said adding in such a circumstance considering his long term carrier he had decided to give up the directorships of LOLC and Browns and to continue as Board of Trustee of the Church of Ceylon.

He also added that Browns had commenced the development phase of Excel World property in to a mixed development project while it is not fair for him to be in the both LOLC and Browns Boards when a negotiation is going on with regards to the development and land lease. According to him Church of Ceylon has certain restrictions with regards to the various developments that are taking place in the properties that Church owns.

Until his resignation Asirwatham was serving LOLC and Browns Boards as a Non-Executive Independent Director. His resignation is yet to be announced by the respective companies and a confirmation is expected shortly. Asirwatham, who was appointed to the LOLC Board in November 2008, headed its Audit Committee as well as the Integrated Risk Management Committee as per company financials.

On the contrary, however head of Audit Committee as well as the Integrated Risk Management Committee of LOLC, Asirwatham's resignation had come at a time when reports from several sources outlined that Sri Lanka’s financial market watchdog and the Monetry Board had discussed a crucial issue that may cause another financial industry downturn in the country which would be a result of Lanka Orix Leasing Company (LOLC), according to sources.

Accordingly sources outlined that several transactions that had happened among LOLC group lead fame and new buyouts had caused LOLC sitting on a debt portfolio valued to the tune of Rs.65 billion or nearly US $ 520 million.

In mid July 2011 it was announced by the Board of Directors of Browns Investments Limited (BIL) that Browns Investments Limited purchased the entirety, save one share, of the shares of Excel Global Holdings (Private) Limited (“the Company”) on 22nd of July 2011 from Francis Chokatte, Sherly Chokatte and Excel Global Holdings Limited.

The notice further said that the Company is the majority shareholder of Millennium Development (Private) Limited, which by Lease Agreement No. 1555 dated 11th March 2003, has leasehold rights to the land on which Excel Park is presently located.

“Browns Investments Limited wishes to state that it has plans to expand the existing facilities which are presently on the premises” the notice said adding the Board of Browns Investments Limited further wishes to state that any development or improvements will be made strictly in compliance with the provisions of the aforementioned Lease Agreement and in consultation with Incorporated Trustees of the Church of Ceylon, which is the owner of the said Land. Moreover, Browns said any such improvements and developments will be made in a manner that will bring substantial value to the premises and to all stakeholders of the premises including the Incorporated Trustees of the Church of Ceylon.

However upon BIL investing in Global Holdings (Private) Limited that time Kamantha Amarasekera, Non Executive Director, BIL had told reporters that with a view making the Excel World a top entertainment park in the city of Colombo, Browns Investments (BIL) plans to invest another US $ 100 million in developing the Excel World property, probably with a few foreign parties.

“We will invest at least a minimum of another US $ 100 million to add a shopping mall, service apartments, multi-storied car park and a water park making this a mixed development project. Colombo doesn’t have a good car park, and it will be ideal to develop the existing car park at Excel World to accommodate more vehicles,” Amarasekara had told reporters at the time.

That time Amarasekara had told reporters that the original lease agreement entered into by Excel Global Holdings with the owners of the land is spanning for two terms each spreading for 40 years starting from 2003. “So we have another 72 years, according to the lease agreement to operate and run this property which is almost like an outright purchase” he said.

Upon Amarasekara's comments that were made to media in 2011 in another development representing the lawyers for Incorporated Trustees of the Church of Ceylon, Attorney at law Neelakandan in a letter to a Media Institution had informed that it is incorrect and false for anyone to claim that “they have another 72 years according to the lease agreement to operate and run the property which is almost like an outright purchase” quoting a news story titled ‘BIL to unveil mega plan for Excel World’.

However that time the stock exchange filing by Browns (BRWN) that said “Excel Global Holdings is the 100% shareholder of Millennium Development Ltd which holds the long term lease of Excel World property located at Darley Road which is in extent of over six acres for a period of 40 years, and renewable for another 40 years.” That time in 2011 when queried from Neelakandan about the correct period of the lease, Neelakandan had denied to respond, adding that he cannot disclose the terms of the lease.

Originally a land owned by Catholic Church of Colombo, in March 2003, then titled ‘Millennium Park’, the country’s only leisure and entertainment complex was earlier acquired by Excel Global Holdings (Pvt) Ltd, a cash-rich multi sectoral business group headed by Chairman Francis Chokatte and family, in major private transaction with Millennium Development (Pvt) Ltd and was renamed as ‘Excel World’.

Then ‘Millennium Park’ was owned by Millennium Development (Pvt) Ltd, the company that owned and managed the landmark five-acre Colombo complex, from Link Holdings Ltd, and the Union Bank.
http://lbt.lk/corporate/announcements/1818-resignation-clarriefied