CIFL depositors unanimously reject the CB restructuring plan

MONDAY, 16 SEPTEMBER 2013 12:41

At least 2000 depositors of troubled finance company Central Investment & Finance PLC (CIFL) unanimously rejected the Central Bank’s  restructuring plan and put forward an alternate plan at a packed meeting at New Town hall in Colombo  a short while ago (on Monday).

President of the newly formed CIFL depositors association Piyasena Weerasinghe    said that the committee has devised an alternate plan to resurrect the company.

He said that before resorting to legal action they will discus with the Central Bank to obtain Rs.1 billion of their defaulted money by Aspic Homes, a subsidiary of CIFL for a housing scheme in Homagama to operate the plan initially and later find an investor to make a capital infusion.

The depositors have agreed to block their deposits for two years and  draw the interest at 12 per cent till the company is revived in accordance with the revival plan    

Depositors have put the blame on the Central Bank for the failure to monitor the financial mismanagement of the company directors for allegedly cheating and committing a criminal breach of trust with regards to depositors’ money.

Mr. Weerasinghe told the gathering of disgruntled depositors that the Central Bank has failed to take any action protect the company from collapsing. Instead they have given its consent to appoint Touchwood Group Chairman Roscoe Maloney and wife  as  Chairman and deputy Chairman with an investment of US$12 million and the board of directors of the CIFL has been re-constituted with three Maloney nominees.

But the Maloney couple has failed to infuse the capital investment promised by them placing the company in dire strait, he said adding that the restructuring plan proposed after wards aimed at converting 60 per cent of deposits to non voting shares cannot be acceptable as they will have to wait for seven years to get the balance 40 per cent of their deposits, he said. – Ends -
http://sundaytimes.lk/latest/37608-cifl-depositors-unanimously-reject-the-cb-restructuring-plan.html

Can turn out to be a good plan too..

I think this Central bank also has some agenda here...

Have they not got better financial managers in there to advise of alternative plans rather than appointing PLC as the look-after party?

http://www.dailymirror.lk/news/35482-cifl-directors-to-pay-back.html

---

Three Directors of the CIFL finance company, who appeared before Fort magistrate for allegedly defrauding depositor’s money, were released on bail after undertaking to pay back the depositor’s money.

The three Directors were released on a personal bail of one million each.(Lakmal Sooriyagoda)

Three Directors of the CIFL finance company who were summoned before the Colombo Fort Magistrate’s Court for allegedly defrauding depositors by issuing dud cheques were released on bail after undertaking to pay back the depositors’ money.

Three Company Directors – Don Joseph Douglas Jayatilleka, Ajith Prabath Samarasinghe and Premasiri Vithana – had been named as the suspects in three separate cases filed by the Slave Island Police, alleging that the finance company had defrauded three depositors of Rs. 1.1 million by issuing dishonoured cheques.

The three Company Directors were ordered to be released on two sureties of Rs. 1 million each by Magistrate Thilina Gamage and their passports were also ordered to be impounded.

Defence Counsel appearing for the suspects told Court that the finance company was in a position to pay back the monies after receiving the Central Bank’s approval.

However, the Acting Director of the Non Bank Finance Institutions of the Central Bank maintained that the Central Bank never suspended repayments to depositors of this company and further said performance of all functions of the CIFL were under the responsibility of its Board of Directors.

Meanwhile, the Acting Director of the Non Bank Finance Institutions of the Central Bank further told that the administrative activities of the CIFL had been handed over to People’s Leasing Company as the Managing Agent.

Meanwhile, the Magistrate directed the CB that a meeting be arranged with People’s Leasing Company to discuss the possibility of releasing the funds to the depositors and further directed that a report pertaining to the matter be filed before Court on 23 September.
http://www.ft.lk/2013/09/17/three-cifl-directors-get-bail-on-repayment-assurance/

People's Bank and PLC are also in trouble then how can they solve a problems of another party?

smallville wrote:Can turn out to be a good plan too..

I think this Central bank also has some agenda here...

Have they not got better financial managers in there to advise of alternative plans rather than appointing PLC as the look-after party?

Genuinely is an expensive gift, U can't expect from cheap people....

(I didn't tell... )