Sep 18, 2019 (LBO) – Sri Lanka’s troubled The Finance Company is to call Expressions of Interest (EOIs) from potential investors and to request such investors to submit their Business Restructuring Proposals to revive the company.
The Central Bank said in a statement that they will facilitate The Finance Company to proceed with suitable investors as per the applicable laws and regulations.
Several efforts were made to identify prospective investors and to restructure the company, but such efforts have not materialized to a satisfactory level yet.
“The primary objective of the regulatory actions was to identify a potential investor for TFC within a reasonable time period,” the Central Bank said.
“However, TFC has not been able to find an acceptable investor to date to revive the company.”
Meanwhile, the Monetary Board has decided to extend the restrictions for a one month period from 15 September 2019, along with further actions on cost minimizing measures to safeguard the interests of the depositors and to facilitate a potential investor.
The regulatory measures included suspension of accepting new deposits, withdrawal of deposits and disbursement of loans and advances to facilitate the restructuring process of the company.
The company reported a loss of 1 billion rupees for the quarter ended 30 June 2019 bringing the total losses since inception of the company to a staggering 27 billion rupees.