Touchwood to pay all matured contracts in 8 months

Touchwood Investments PLC yesterday undertook in courts to repay all matured contracts within a period not exceeding eight months in three instalments, according to the lawyers appeared for the company.

When the case to appoint a provisional liquidator was taken up yesterday for the second hearing at the Commercial High Court Colombo, the company had undertaken to file the repayment plan as earlier instructed by the judge. The lawyers appeared for the company had further filed objection to appointing a provisional liquidator.

“The company agreed to pay all the matured contracts which they had entered into in their repayment plan,” the counsel appeared for Touchwood said.

Despite the total amount due is still being finalized, the payments would be made on a staggered basis.

The initial 25 percent of the total amount due will be made in three months, while another 25 percent will be paid in total of five months, while the balance 50 percent will be made in eight months starting from October 14.

“The company further undertook to file a comprehensive breakdown of the contracts which are already matured and are due to be matured when the case was taken up again on October 31, 2013 for the third hearing,” said the counsel.

Meanwhile, Touchwood Chairman L.W. Kiwlegedara told Mirror Business that they had already started their restructuring process and to that effect, three new appointments including one board appointment had been made at the last board meeting.

“We appointed the former Deputy Chairman Asitha Koralage as our Restructuring Consultant and Tivanka Ekaratne as our Legal Advisor to the board,” he said.

Last week, Touchwood appointed Chamitha Ranneththi, a real estate investment and a property management consultant and the Chairman of RKC Construction and Consultancy Ltd as an Independent Non-Executive Director, following a slew of changes in the board.

“Chamitha’s appointment was made in order to add the right blend of skills into the board,” Kiwlegedara added. (DK)

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