Ceylinco Shriram settles 62% in cash to 80% of investors
Wednesday, 31 July 2013 00:00
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Ceylinco Shriram has successfully made payments in cash to 4,639 which represent 80% of their investors, amounting to over 62% of their deposits, as of now. The balance 1,150, which represents 20 % of the investors, has received payments averaging over 22 % of their investments in cash. The payments have been made in conformity with the payment plan submitted by the Board of Directors of Ceylinco Shriram to the Courts and its investors. The payment plan was formulated, with the interest calculated up to time of preparing the settlement plan, and included in 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. This amount is to be utilised to settle the depositors as proposed in the repayment plan.
In addition to the said loan given to Celestial Towers, 55% of the ownership of the Celestial Tower project was held by Ceylinco Shriram Companies. 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 track and that Ceylinco Shriram is confident of delivering the promise made to the investors that 60% of the money invested would be settled. Ceylinco Shriram was the first, and one among the few companies, to present a practical and realistic payment plan that addressed the concerns of the investors. A pertinent fact is that 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 continued to pay all investors their dues until December 2008, where the company had to face a situation beyond its control, and succumb to consequential effect of the collapse of Golden Key and other Ceylinco Group companies. Even after the crisis, the company always strove to maintain a productive dialogue with the investors and took their views in preparing the payment plan.
