The Central Bank will be moving the Supreme Court (SC) to take over the management of the failed Golden Key and formulate a mechanism to reimburse depositors, a high-ranking official of the regulatory body said yesterday.
"We will be appealing to the SC through the Attorney General’s Department next week to acquire the operations of this company, which collapsed in 2008", he said.
The Fundamental Rights (FR) plea filed by a group of GK depositors will resume before the SC on March 11, 2015.
He said that the Central Bank will examine the possibility of liquidating assets and repaying investors if the SC gives the green light to directly intervene and take over the management of this Ceylinco subsidiary.
Asked whether the Central Bank will formulate a fresh repayment solution to grant relief to struggling depositors, the senior official replied, "Yes, we will work out a traditional plan on the lines of the formula adopted for Mercantile Credit".
He said that the newly-constituted GK Board of Directors has failed to restructure the company and move in a positive direction. "All the directors, except Mrs. Dushanthi Hapugoda, have already resigned"The island