NSB initiates financial due diligence on Entrust

Wednesday, 13 January 2016 00:22 - - {{hitsCtrl.values.hits}}

The National Savings Bank (NSB) yesterday informed the Colombo Stock Exchange (CSE) that it is in the process of undertaking a financial due diligence on the troubled primary dealer Entrust Securities PLC.

As per the decision of the Monetary Board, with effect from 5 January the management of Entrust Securities PLC was vested with NSB with a view of taking appropriate measures for recovery and restructuring.

As Entrust Securities is a listed entity the state-owned NSB in a statement said; “Accordingly, we are now in the process of undertaking a financial due diligence. An Action plan for restructuring of Entrust Securities PLC will be formulated thereafter.”

The Central Bank gave Entrust Securities three months’ grace period from November 2015 to come up with a viable and credible restructuring program. However, since the deadline which expired on 4 January, was not met, authorities initiated measures to take over the company.