Industrial Finance agrees on repayment plan to depositors

Tuesday, 11 October 2011 00:38 - - {{hitsCtrl.values.hits}}

By Dinali Goonewardene

Industrial Finance Ltd. has notified depositors who have not been paid that agreement has been reached with the Depositors’ Society following directions issued by the Monetary Board of the Central Bank of a repayment plan after capital infusion by Invest Lanka Investment Company Ltd. and People’s Leasing Company Ltd.

The repayment plan details the repayment of 50% of capital and the issue of nonvoting shares for the balance 50%of capital and for interest accrued from August 2009 to January 2012.

The company will determine the capital repayment outstanding as per the books of accounts and records maintained by the company and compute interest accrued from August 2009 to December 2009 on the basis of rates contracted as per the fixed deposit certificates.

The interest will be computed from 18 December 2009 to 31 January 2012 at 4% per annum for deposits for which interest payments had been contracted monthly. Interest of 5% will be paid on deposits to receive interest annually.

Industrial Finance was established in 1962 and operates in Colombo and through four branches. Its product portfolio includes microfinance, leasing and hire purchase, foreign deposits, savings accounts, fixed deposits, real estate and pawning services.

Depositors said the company had been bought by the Aspic Group in 2008 and was sold within 18 months to the Millennium Group, after which liabilities had not been met, leading to action being taken in courts.