Troubled The Finance Company PLC (TFC) in a newspaper advertisement yesterday had indicated that it requires a minimum equity investment of Rs.25 billion to stay afloat amid moves by the Central Bank to liquidate the firm.
With the Central Bank granting TFC with additional two to three weeks to find an investor, the company has again floated an Expression of Interest (EOI) inviting a suitable investor to invest in the firm.
The Central Bank issued a notice of cancellation of licence granted under the Finance Business Act No. 42 of 2011 (FBA), on October 23, 2019, as the firm is facing severe liquidity issues.
TFC said the deadline for the EOI would be 14 days from the date of the publication of the newspaper advertisement calling for EOIs.
TFC had Rs.28.1 billion worth financial liabilities due to customers and its asset base had plummeted to Rs.10.8 billion as of June 30 this year.
According to the Central Bank, 93 percent of TFC depositors are holding deposits below Rs.600, 000 and hence, they can be paid their full deposit through the Deposit Insurance and Liquidity Support Scheme, if the firm goes into liquidation.
As of June 30 this year, TFC recorded Rs.27.8 billion in accumulated losses. The firm is said to be losing Rs.200 million a month.
If TFC fails to find an investor during the next two to three weeks, the Central Bank would resume its regulatory action against the finance firm.