Court steps in to halt sale of MTD Walkers

COLOMBO (News 1st) - MTD Walkers PLC was at the centre of controversy as it was revealed that the company had obtained a large number of loans from the state banks and was unable to repay them. There were reports of a loan obtained by this company from a state bank at which Jehan Amaratunga was a director. He was the Executive Deputy Chairman of MTD Walkers PLC at the same time these facilities were made available to the company. MTD Walkers PLC had informed the Colombo Stock Exchange recently that the company was to be sold to Ravi Wijeratne. In a stock exchange disclosure, MTD Walkers informed the marketplace today (October 08) that they have received an order from the Commercial High Courts of Colombo regarding this sale. The order enjoined the company, or its holding company MTD Capital Bhd, from going through with an earlier disclosed transaction to sell the company to controversial casino operator Ravi Wijeratne. The order prevents the sale of the firm without approval by Commercial Bank until all outstanding dues to Commercial Bank are settled. Commercial Bank is one of several banks with large credit exposures to the troubled construction company. While the Commercial Bank is taking such action what will the People's Bank do ensure that the debt to the bank is repaid?