Hospitality firm, Anilana Hotels and Resorts PLC (Anilana), said yesterday it was negotiating with Sampath Bank PLC to settle its loans in default, after the bank gave notice that Anilana’s mortgaged lands would be auctioned off.
“The company has been communicating with Sampath Bank PLC on a repayment programme with an initial lump-sum payment for the settlement of the overdue portion of the credit facilities,” Anilana Managing Director Asanga Seneviratne said in a disclosure to the Colombo Stock Exchange.
He said the firm has already made two installment payments in May, and is committed to settle the remaining overdue balance on or before July 31, 2017.
Notices given by Sampath Bank last week stated that Anilana had defaulted on four loans totalling Rs. 1.32 billion, while the total interest accumulated on the loans amounted to a further Rs.1.27 billion.
Sampath Bank said it has commissioned licensed auctioneer Schockman and Samarawickrama to sell the four mortgaged properties in Nilaveli, Vakarai and Passikkudah to recover the loans, interest and other costs related to the loans, minus any repayments.
Anilana’s balance sheet, as at March 31, 2017, listed Rs.1.23 billion in non-current borrowings and Rs.507.86 million in current borrowings. A further Rs. 253.17 million was listed under
The firm’s properties were valued at Rs.4.09 billion, while it had Rs.939.40 million in investment property holdings.
The company amassed Rs.1.71 billion in accumulated losses. Net losses for FY17 amounted to Rs.305.05 million, up from Rs. 243.11 million in 2016.
Anilana has not made annual profits ever since it went public
Seneviratne, who had close links with the previous Rajapaksa administration, owns 24.72 percent of the shares in Anilana while BBH Gmoemerging Markets Fund held 21.08 percent.