Ceylinco Shriram settles 60% in cash to 75% of investors

Wednesday, 27 February 2013 00:00 - - {{hitsCtrl.values.hits}}

Ceylinco Shriram has successfully made payments to 4,330 people, which amounts to nearly 75% of their investors, over 60% of their deposits in cash as at now.

The other 1,443 people, 25% of the investors, have received payments averaging to over 20% of their investments in cash. The payments have been made in compliance with the payment plan submitted by Ceylinco Shriram’s Board of Directors to the courts and its investors.

The payment plan was prepared with the interest calculated up to the time of formulating the settlement plan and included the repayment amounts, a reliable source confirmed.

The same source reveals that a staggering Rs. 800 million is due to Ceylinco Shriram from the Celestial Towers project as repayment of the loan given to them along with the interest due for this loan. According to the proposed plan, this amount is to be utilised to pay a further 40% to 25% of the depositors who have received an average of 20% of the money they invested.

In addition to the said loan given to Celestial Towers, 55% of the ownership of the Celestial Towers project is held by Ceylinco Shriram. If this stake could be realised at the present market value, the entire amount could be utilised to pay the investors far beyond the promised 60%.

Sources point out that the payment plan is on course and that Ceylinco Shriram is confident of delivering the promise made to the investors – that 60% of the money invested would be settled. Further, the Supreme Court recently approved another Rs. 200 million to be paid to the investors by 15 April 2013 as the fifth instalment.

Ceylinco Shriram was the first, and was one of the few companies, to present a practical and realistic payment plan that addressed the concerns of its investors. The directors of Ceylinco Shriram were committed to seeing that every investor was settled, understanding their plight, which many felt was reflected in the payment plan presented.

Ceylinco Shriram had to face a situation beyond its control and succumbed to the domino effect which was brought on by the collapse of Golden Key and other companies in the Ceylinco Group.

Ceylinco Shriram continued to pay all investors their dues until December 2008, at a time when many financial giants worldwide experienced setbacks due to the changing dynamics of the industry. Even after the crisis, the company always strove to maintain a productive dialogue with the investors and included their views when preparing the payment plan.