CIFL has been hit by a liquidity crisis where payments were delayed to depositors, and the CB after discussions agreed to the infusion of foreign cash by the owners of Touchwood (the Malony couple). The Touchwood investors also took over management of the company.
In a statement on Monday, the CB said People’s Leasing & Finance has been appointed Managing Agent of CIFL “considering the prevailing liquidity and management issues of the CIFL”.
It said the Managing Agent will be expected to improve the financial status of CIFL within a reasonable period of time, and the CB will closely monitor the progress.
“In the meantime, all present members of the Board of CIFL would be expected to extend their full co-operation to the Managing Agent to resolve the current issues faced by the company, while they would also be held responsible for the settlement of liabilities of depositors and other creditors prior to the appointment of the Managing Agent,” the statement added.