Written by Staff Writer
27 Nov, 2018 | 4:39 am
COLOMBO (News 1st): A ‘troubled listed company’ has reported a loss of Rs. 1 Billion during the 3 months which ended on September 30. This company is accused of having close links to a State Bank in the country.
According to reports by Economy Next, MTD Walkers showed Rs. 1.1 Billion in negative earnings for the quarter – unchanged from 2017. Allegations were levelled recently at Jehan Amaratunga for obtaining facilities totalling Rs. 10bn for this company as the Executive Deputy Chairman. The loan was obtained from the People’s Bank, where Amaratunga was also serving as a Director.
Issuing a letter at the time, People’s Bank noted that the Bank has granted loan facilities to MTD Walkers PLC after a proper evaluation of the projects. The Bank went on to note that loans were granted only after considering the basis for the quantum of loans granted was the business scope of the Company and the repayment capacity of the Company.
At present, the companies debt has accumulated to a level where the company’s revenue is barely sufficient to service such debt. Significant questions arise as to how well secured the People’s Banks’ chances of recovery are.
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