Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» UBC - Stake up by big invester
by Trader321 Today at 5:29 pm

» UBC TO HIT 24 ??
by Trader321 Today at 5:18 pm

» AEL.N0000 is the Next AAIC.N0000 -
by Trader321 Today at 12:37 pm

» presidential election very soon ?
by Trader321 Today at 12:36 pm

» World Bank approves USD70Mn to Sri Lanka
by Sstar Today at 11:13 am

» MARKET CRASH - GUARANTEED
by Sstar Today at 11:09 am

» INSURANCE companies finally falling!
by Sstar Today at 11:04 am

» Sri Lanka shares end little changed; rupee rises
by Miss-Sangeetha Yesterday at 6:30 pm

» Daily Stock Market Update
by Insights Equity Yesterday at 6:17 pm

» Diversification of Sri Lankan economy, must to garner more economic benefits
by ChooBoy Yesterday at 2:04 pm

» ALHP Right issue......!!!!1
by Miss-Sangeetha Yesterday at 11:47 am

» UBC.N0000- Donnt miss this
by Trader321 Yesterday at 10:13 am

» Sri lanka tourism income reached 4.4 billion USD 2019
by ranferdi Yesterday at 8:48 am

» BFN - DEAL OVER - TO BE DE LISTED SOON AFTER THE PRIVATE PLACEMENT ඩීල් එක ඉවරයි @ 19-59 - කොටස් වෙළදපලෙනුත් ඉවත් කරගන්නා බවට ආරන්චි
by sanjulanka Mon Mar 18, 2019 7:03 am

» While waiting for the market to rebound, look for bargains if you can afford the risk. Try to be active at the right time to gain something
by Asoka Samarakone Sun Mar 17, 2019 3:18 pm

» ඉතා ඉක්මනින් සේවක අර්තසාදක අරමුදල නැවත කොටස් වෙළදපල ට
by mahasona2 Sun Mar 17, 2019 3:43 am

» Central Bank targeting early return of EPF to stock market
by mahasona2 Sun Mar 17, 2019 3:24 am

» Lofc delisting??
by Bdcdman Sat Mar 16, 2019 11:16 pm

» Weekly Stock Market Roundup
by Insights Equity Sat Mar 16, 2019 5:37 am

» Today is UBC.N0000 day.
by Trader321 Fri Mar 15, 2019 11:32 am

» HVA WILL THEY RECTIFY THE REGULATORS QUARIES BEFORE DEAD LINE?
by Bdcdman Fri Mar 15, 2019 11:11 am

» ALHP WILL MOVE UP from next MONDAY
by Miss-Sangeetha Fri Mar 15, 2019 10:52 am

» GOLDEN ERA
by ranferdi Fri Mar 15, 2019 8:45 am

» ALHP WILL MOVE UP SOON
by mahasona2 Thu Mar 14, 2019 11:05 pm

» CASH RICH REXP
by Yahapalanaya Thu Mar 14, 2019 6:09 pm

» ලාංකීය හෙදියකට ලක්ශ 9 ක් ගෙවන ඇමෙරිකාව
by Uaecoindubai Thu Mar 14, 2019 3:48 pm

» BALA.N potential
by NP Thu Mar 14, 2019 2:30 pm

» EAST INTERESTING DAYS AHEAD 25+
by karuna2 Thu Mar 14, 2019 11:43 am

» රජයේ පඩි දෙගුණයක් වුන හැටි
by Uaecoindubai Thu Mar 14, 2019 9:31 am

» UBC.N0000 Vs AEL.N0000 - What will be the best
by Trader321 Thu Mar 14, 2019 9:15 am

» EFP TO start again invest in Stocks
by mahasona2 Thu Mar 14, 2019 1:10 am

» Second reading of budget passed by 119 Votes - Shows this Government is Confident
by Maharaja Wed Mar 13, 2019 11:27 pm

» UBC - What is going on
by mahasona2 Wed Mar 13, 2019 9:51 pm

» Fall of stocks - Big Players are behindThis is the time to buy and collect stocks
by mahasona2 Wed Mar 13, 2019 9:49 pm

» Government salary hike almost double..
by Uaecoindubai Wed Mar 13, 2019 9:32 pm

» COLOMBO STOCKS 5 1/2 LOW
by soileconomy Wed Mar 13, 2019 7:19 pm

» UBC.N0000 ? Expert ideas please ?
by Trader321 Wed Mar 13, 2019 2:31 pm

» UBC.N000- keep eye, something is happening
by Trader321 Wed Mar 13, 2019 2:22 pm

» How about EAST @ 10/= end of march
by karuna2 Wed Mar 13, 2019 2:21 pm

» CHOU.N0000
by Shiranleet Wed Mar 13, 2019 11:16 am

» Why Access might be over Rs. 2000/ per share valued along with Banks by 2049, due to New Budget Proposals on Joint Venture Construction projects
by Chanaka303 Wed Mar 13, 2019 9:58 am

» HPWR-Unnoticed Gem?
by Chanaka303 Wed Mar 13, 2019 9:57 am

» What is going on with TFC.N0000
by Gihan04 Wed Mar 13, 2019 9:45 am

» DIST.N0000
by Bdcdman Wed Mar 13, 2019 1:13 am

» Sri Lanka largest Foreign Direct Investments realizer and Deal Maker: Union Bank connected Alex Lovell might own and control over US $ 40 billion worth properties by 2025 in Sri Lanka, around over 30% of Sri Lanka's GDP of US $ 120 billion
by JosephMark Wed Mar 13, 2019 12:40 am

» Hpfl and rhtl
by Yahapalanaya Tue Mar 12, 2019 7:58 pm

» Exit out from EAST, Valuations are low. Dont wait till the month end.
by charithaa Tue Mar 12, 2019 12:33 pm

» EAST.N0000 - Huge loss...Donn't get into these traps.
by investo Tue Mar 12, 2019 12:05 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Four more banks obtain enjoining orders against KAPI (MTD Walkers)

Four more banks obtain enjoining orders against KAPI (MTD Walkers)

Go down  Message [Page 1 of 1]

Miss-Sangeetha

Miss-Sangeetha
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Four leading Banks in Sri Lanka, namely Bank of Ceylon, People’s Bank, Sampath Bank PLC, and Nations Trust Bank PLC, this week sought for Enjoining Orders against MTD Walkers PLC, a listed company engaging in infrastructure-related businesses including civil engineering, heavy engineering, electrical engineering, pile construction, power generation, real estate development, marine engineering and trading of heavy equipment and in multidisciplinary engineering activities in Sri Lanka and Maldives.This is in addition to a similar action by Commercial Bank, Seylan, DFCC and NDB.

In the case of the Plaintiff Banks (BOC, PB, SP and NTB) was that MTD Walkers PLC, through its numerous subsidiaries and its own debenture issue, had borrowed money amounting to a total exposure of approximately Rs. 13 billion from the four Plaintiff Banks. Thereafter by a corporate disclosure made to the Colombo Stock Exchange, it was revealed that MTD Walkers PLC being the 100% owner of Walkers Shipyards Limited, Northern Power Company Ltd., and Colombo Fort Heritage Company Ltd., intended to transfer 100% shares of the said companies to MTD Capital Berhad, the parent company of MTD Walkers PLC based in Malaysia.

The Plaintiff Banks further brought to the attention of the Commercial High Court that such transfer, especially in the circumstances that the consideration for the sale of the subsidiary companies not being for the benefit of MTD Walkers PLC, being transferred to a Company in Malaysia, would cause a serious depletion of assets of MTD Walkers PLC, creating an imminent threat to the stability of MTD Walkers PLC and its group of companies.

Furthermore, it was submitted that such transfer would be illegal, having no avail in law owing to the violation of the Land (Restrictions on Alienation) Act No. 38 of 2014 (as amended), Rule 9.4.1 of the CSE Listing Rules, and not satisfying Section 185 of the Companies Act No. 7 of 2007, and MTD Walkers PLC’s attempt to transfer would defraud the shareholders. And thus, in such circumstances if the transfer is effected, the Plaintiff Banks would be unable to recover the amount due bAy MTD Walkers PLC and its subsidiaries to recover from MTD Walkers PLC.

The Learned High Court Judge, Honourable Mahanil Prasantha De Silva, being satisfied with the Plaintiffs’ cases, granted Enjoining Orders restraining MTD Walkers PLC from acting or giving effect to the transfer of shares, as announced to the Colombo Stock Exchange.

The Colombo Stock Exchange, Central Bank of Sri Lanka Bank Supervision Department Director, Securities and Exchange Commission of Sri Lanka, and the Registrar General of Companies, which are regulatory bodies of MTD Walkers PLC, were also named as Defendants merely for the purposes of giving notice to them. In addition, Bank of Ceylon also obtained an Enjoining Order against Northern Power Company Ltd. where Northern Power Company Ltd. had directly borrowed from Bank of Ceylon.

The Plaintiff Banks were represented by President’s Counsel Dr. Harsha Cabral, along with Nishan Premathiratne, Nadun Wijesriwardena, Janith Fernando and Chamaka Ambagahawita, Attorneys at Law on the instructions of Messrs. Julius and Creasy.

The matter is to be called on 25 February.

Source-www.ft.lk

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum