FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Latest topics

» Buy back season - Richard Pieris
by Runnerx Yesterday at 10:31 pm

» What is Wrong with SOFTLOGIC HOLDINGS PLC (SHL.N000)
by DeepFreakingValue Yesterday at 10:10 pm

» SRI LANKA TELECOM (SLTL.N0000) - Reawakening the Giant
by God Father Yesterday at 9:32 pm

» Focus on Government controlled entities
by K.R Yesterday at 9:17 pm

» PMB/PLC/PINS
by GOSL Yesterday at 6:47 pm

» May Day! alert from SOFTLOGIC FINANCE PLC (CRL.N0000)
by God Father Yesterday at 5:45 pm

» LOLC FINANCE PLC (LOFC.N0000)
by Equity Win Yesterday at 3:49 pm

» THE NEXT OPPORTUNITY - GET IN
by morphy360 Yesterday at 10:11 am

» UNION BANK - Ownership change requires approval
by God Father Wed Dec 07, 2022 5:51 pm

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by K.R Wed Dec 07, 2022 4:21 pm

» Sri Lanka cleared to borrow cheaper IDA funds by World Bank
by K.R Tue Dec 06, 2022 10:14 am

» PLR (Prime Lands) Next Value counter.. Fair Value Rs 20
by Anushka Perz Tue Dec 06, 2022 12:19 am

» NESTLE LANKA PLC (NEST.N0000)
by Anushka Perz Tue Dec 06, 2022 12:15 am

» What will happen tomorrow?
by ErangaDS Mon Dec 05, 2022 9:12 am

» Paris Club proposes 10-year moratorium on Sri Lanka debt, 15 years of debt restructuring
by K.R Sun Dec 04, 2022 11:27 pm

» Banking Sector Faces Tight Liquidity
by DeepFreakingValue Sat Dec 03, 2022 4:15 pm

» Sri Lanka: Exchange Rate Movement
by DeepFreakingValue Sat Dec 03, 2022 3:46 pm

» Fitch downgrades Sri Lanka’s rating further
by CHRONICLE™ Sat Dec 03, 2022 9:12 am

» Sri Lanka bond yields extend fall on DDR comments
by K.R Fri Dec 02, 2022 7:11 pm

» Sri Lanka banks may need more regulatory, accounting forbearance
by CHRONICLE™ Fri Dec 02, 2022 2:05 pm

LISTED COMPANIES

Submit Post


ADVERTS

Poll

EXCHANGE RATE PREDICTION: 2022

ASIA CAPITAL IN DISARRAY Vote_lcap16%ASIA CAPITAL IN DISARRAY Vote_rcap 16% [ 43 ]
ASIA CAPITAL IN DISARRAY Vote_lcap21%ASIA CAPITAL IN DISARRAY Vote_rcap 21% [ 58 ]
ASIA CAPITAL IN DISARRAY Vote_lcap30%ASIA CAPITAL IN DISARRAY Vote_rcap 30% [ 83 ]
ASIA CAPITAL IN DISARRAY Vote_lcap34%ASIA CAPITAL IN DISARRAY Vote_rcap 34% [ 93 ]

Total Votes : 277

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » EXPERT CHRONICLE™ » ASIA CAPITAL IN DISARRAY

ASIA CAPITAL IN DISARRAY

Go down  Message [Page 1 of 1]

ddindika

ddindika
Manager - Equity Analytics
Manager - Equity Analytics

ASIA CAPITAL IN DISARRAY 477810

* Hotels owned by ACAP valued approximately US$7.2 mn to be transferred to Japanese investors as settlement to avoid litigation.
* Seylan Bank and other lenders to force sale assets of ACAP to recover US$ 3mn owing to banks.
* ACAP facing severe liquidity crisis as the shareholders funds have fallen below the statutory level required to pass the solvency test.


The listed investment bank Asia Capital PLC (ACAP) is in facing financial crisis as it is expected handover the ownership of all major hotels to Japanese investors as a part of the ongoing settlement. As per this settlement Asia Capital will handover Habitat Kosgoda, Taprobana Wadduwa and River House Hotel to Japanese investors. According to sources these hotels are valued approximately $7.2 mn. Further in 2021 Asia Capital transferred the full ownership Shinagawa Hotel and 5 acre land in Kosgoda to another consortium of Japanese investors as a settlement. Above settlement has resulted in company losing the ownership of all operational hotels owned previously except 12 room Tamarind Hill hotel in Galle which is under a lease. In additional to above settlement, further US$ 5mn remain unsettled with the Japanese investor Tamao Watanabe.These settlement have come as a result of Japanese investors threatening to take legal action recover their investment alleging fraud and mismanagement by the key executives of the company.

Meanwhile the Seylan Bank PLC the largest lender and bankers to Asia Capital have notified its intention to initiate parate action and to force sale the assets to recover loans which has been outstanding and in non performing category for considerable period of time. As per the latest financial statement release by the Asia Capital, the total interest bearing loans amounts to LKR 1.4 billion of which approximately LKR 1 billion due to the Seylan Bank. Directors of the company have been reported to the CRIB.

Further according to the latest financial statement released by Asia Capital to the CSE the company is facing severe liquidity crisis as the shareholders funds have depleted to a level below the statutory level required to pass the solvency test as per the companies act of Sri Lanka. According to sources Asia Capital is seeking loans from its major shareholders to remain liquid and to meet its day to day operational expenses.

The new Companies Act No. 7 of 2007 brought into existence the solvency test into the legal framework of Sri Lanka. This is to be met in a variety of corporate procedures and requires companies to satisfy two tests to be classed as being solvent; the first is the “cash flow” test or trading solvency. The second test is a̳ ssets test‘ or balance sheet solvency, namely that the assets of a company must be greater than its liabilities.

Asia Capital PLC share is currently trading around LKR 7/= where as the Net Asset Value (NAV) of the group as at 30th September 2021 is stated at LKR 3.85 per share. Proposed settlement with Japanese by transfer of assets amounting to US$ 7.2mn is likely to result in negative asset value and possible bankruptcy unless company take immediate action to infuse further equity.

https://files.fm/f/9pxccmhs4

Share this post on: reddit

No Comment.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum