Dr. Senthilverl moves to wind up Orient Garments PLC
Tuesday, 24 February 2015 01:23
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A high net worth investor, Dr. Thirugnanasambandar Senthilverl has moved to have Orient Garments PLC compulsorily wound up by Court. Dr. Senthilverl is the single largest shareholder as well as a Director of Orient Garments PLC.
Dr. Senthilverl had previously called for a Board meeting of Orient Garments to have the same liquidated by Court under Section 219 of the Companies Act. However, as the other Directors did not agree to apply to Court for a winding up, Dr. Senthilverl has now presented a petition to the Commercial High Court of Colombo to compulsorily wind up Orient Garments PLC.
The petitioner, Dr. Senthilverl has stated in the petition that Orient Garments’ current assets are less than the current liabilities and that the company lacks working capital to continue day-to-day operations and that bank overdrafts have been obtained to pay worker salaries.
Orient Garments in desperation sought to infuse capital by way of a rights issue. However, the majority of the shareholders, 56% of the shareholders present and voting, voted against the rights issue, leading to its defeat. As such, without the money expected from the rights issue, the company is not able to pay its creditors.
In those circumstances, after hearing the submissions of Counsel appearing on behalf of Dr. Senthilverl, Avindra Rodrigo with Shanaka Gunasekara and Ananda Tikiriratna instructed by F J & G De Saram, the Commercial High Court Judge Amendra Seneviratne fixed the petition for hearing on 4 June and directed the copy of the petition to be served on the company and be published in newspapers and in Government gazette when the matter was taken up in the Commercial High Court of Colombo yesterday.
