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MTD Walkers has been under financial stress, having recently restructured payment of a maturing debenture in order to satisfy conditions of payment stipulated in the debenture trust deed.
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This eleventh hour restructuring saved the company and the corporate debt markets from a significant default. Banking insiders have said that due to the controversy, the resignation should have happened months ago.
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However, Jehan Amaratunga continued to hang on as a Director of Peoples Bank. They say that credit must be given to the President for finally making moves to clean up the board of the bank.