Friday 5 December 2014

Touchwood troubles: Rs. 3.3 b claims by 1,537 creditors

The case for the winding-up of Touchwood Investments PLC was called in the Commercial High Court of Colombo yesterday, where an interim Report was filed by the Liquidator.

The Counsel appearing for the Liquidator stated that he received 1,537 claims from the creditors of the company being wound-up and the Interim Report filed by the Liquidator further states the total claims amount to Rs. 3,302,606,498.

The Liquidator’s Interim Report further stated that the Liquidator has commenced the maintenance of the estates of the local plantations and have provided security to the said plantations in accordance with the Maintenance Agreement the company has had with the investors who are now the creditors of the company being wound-up.


The Liquidator further stated that despite A Deed of Transfer being given to some of the investors, conveying the property in their names, the ownership of such property is limited to a specified time period and upon expiry of such period the ownership of the land is to vest back in the company.

As the company has had the exclusive rights over the maintenance of the plantations the Liquidator who has now stepped into the shoes of the management of the company has taken up the task of maintaining the same. The Liquidator is of the opinion that severe hardships and complications will have to be faced in the event the investors attempt to maintain their plots of land on their own, due to many reasons, one such reason being limited access to each plot.

Under these circumstances the individual investors have no authority to enter into their plots of land without seeking prior permission from the Liquidator, as allowing individual investors to manage their plots according their whim would jeopardise the rights of other investors and place the entire estate and the plots of other investors at great risk. The Liquidator is assisted by several voluntary committees in maintaining the 37 estates of the company.

The Liquidator further stated in Court that he has discovered several freehold assets of the company submitting to Court that a more comprehensive report on the assets of the company will be filed in due course. Liquidator’s report further states that several transactions carried out by the company are voidable under the law and such transactions should therefore be reversed re-vesting the ownership of the assets pertaining to such transactions in the company.

Counsel appearing for the Creditors requested the Liquidator to file a complete list of all the creditors who have submitted their claims to the Liquidator and the latter agreed to do so.

The matter will be taken up next on 19 March 2015 on which date the Liquidator will file a further report and inform Court the progress of the matter.

Counsel Avindra Rodrigo with Rozali Fernando appeared for the Petitioner, President’s Counsel Nihal Fernando appeared for the company and Counsel Sugath Hettiarachchi appeared for the Liquidator, whilst Counsel V.K. Choksy and Shanaka de Livera appeared for several creditors of the company being wound-up.
www.ft.lk

No comments:

Post a Comment