Court orders Touchwood repayment plan by 14 Oct.

Friday, 4 October 2013 06:26 - - {{hitsCtrl.values.hits}}

Tough task for Touchwood team?

10 more customers support winding up application filed by Nanayakkara
Those seeking legal redress have invested in timber plantations in both Sri Lanka and Thailand
Court supports appointment of provisional liquidator to preserve company assets prior to dissolution to ensure dues can be settled
Touchwood lawyers say winding up or liquidator unnecessary as company has only cash flow issues and SEC informed of capital infusion plans

The beleaguered Touchwood Investments Plc (TWOD) was directed yesterday by the Colombo Commercial High Court to submit to Court by 14 October its repayment plan to aggrieved customers. The Court ordered the submission by the company when applications filed by a defrauded customer, K.A.D.L. Priyanka Nanayakkara, for winding up of TWOD and appointing of provisional liquidator were taken up for hearing. Several more TWOD customers including a few employed abroad had supported Nanayakkara’s applications. All these customers’ grievances arise from TWOD’s timber plantations both in Sri Lanka and Thailand.

The Court supported an application made by the petitioner for the appointment of a provisional liquidator who can assume responsibility for collect and preserve the company’s assets if the company is to be dissolved. Counsel for the Petitioner instructed by F. J. & G. de Saram emphasised the necessity of appointing a provisional liquidator in order to protect the company properties and liquidity. “If this does not happen, the properties could be sold out like what we witnessed in other financial companies. The Chairman and Vice Chairman of the company have fled the country and did not attend the Annual General Meeting but they participated in the meeting over a video conference,” Attorney Rodrigo said. Lawyers for TWOD instructed by Paul Ratnayeke Associates expressed the company’s determination to repay depositors their dues. It was pointed out that the company was only facing a cash flow problem and not an assets-liabilities mismatch. Plans for fresh infusion of cash into the company have been made known to the Securities and Exchange Commission. Appearing on behalf of the SEC, Dr. Harsha Cabraal PC said the regulator was protecting the company’s shareholders. Cabraal said that it had been decided to appoint a provisional liquidator. “While investigations were going on, several things happened like new appointments to the Board. The SEC is not an owner but a regulator. The SEC is here only to assist the investigations which are underway,” he said.