Touchwood troubles: Rs. 3.3 b claims by 1,537 creditors

The case for the winding-up of Touchwood Investments PLC was called in the Commercial High Court of Colombo yesterday, where an interim Report was filed by the Liquidator.

The Counsel appearing for the Liquidator stated that he received 1,537 claims from the creditors of the company being wound-up and the Interim Report filed by the Liquidator further states the total claims amount to Rs. 3,302,606,498.

The Liquidator’s Interim Report further stated that the Liquidator has commenced the maintenance of the estates of the local plantations and have provided security to the said plantations in accordance with the Maintenance Agreement the company has had with the investors who are now the creditors of the company being wound-up.

The Liquidator further stated that despite A Deed of Transfer being given to some of the investors, conveying the property in their names, the ownership of such property is limited to a specified time period and upon expiry of such period the ownership of the land is to vest back in the company.

As the company has had the exclusive rights over the maintenance of the plantations the Liquidator who has now stepped into the shoes of the management of the company has taken up the task of maintaining the same. The Liquidator is of the opinion that severe hardships and complications will have to be faced in the event the investors attempt to maintain their plots of land on their own, due to many reasons, one such reason being limited access to each plot.

Under these circumstances the individual investors have no authority to enter into their plots of land without seeking prior permission from the Liquidator, as allowing individual investors to manage their plots according their whim would jeopardise the rights of other investors and place the entire estate and the plots of other investors at great risk. The Liquidator is assisted by several voluntary committees in maintaining the 37 estates of the company.

The Liquidator further stated in Court that he has discovered several freehold assets of the company submitting to Court that a more comprehensive report on the assets of the company will be filed in due course. Liquidator’s report further states that several transactions carried out by the company are voidable under the law and such transactions should therefore be reversed re-vesting the ownership of the assets pertaining to such transactions in the company.

Counsel appearing for the Creditors requested the Liquidator to file a complete list of all the creditors who have submitted their claims to the Liquidator and the latter agreed to do so.
The matter will be taken up next on 19 March 2015 on which date the Liquidator will file a further report and inform Court the progress of the matter.

Counsel Avindra Rodrigo with Rozali Fernando appeared for the Petitioner, President’s Counsel Nihal Fernando appeared for the company and Counsel Sugath Hettiarachchi appeared for the Liquidator, whilst Counsel V.K. Choksy and Shanaka de Livera appeared for several creditors of the company being wound-up.
www.ft.lk

Current TW guy is from Badulla went to Badulla Maha vidyalaya
Touchwoood investors may be in trouble, but if you know the wealth of Touchwood guy now and 10 ears ago, touchwood investors might realized what happned to TW.

No chance for shareholders?

I have relatives from Badulla went to same school ( Badulla vidyalaya) and very good friends of them said to me few years ago.
TW guy came from a brand new toyota car and spoke to the manger of the branch.... after sometime, deposited millions in cash.
Ask some one from badulla about their wealth.

my relatives are not that rich, but respectable people in Badulla.
they could not believe how he became  this rich within a short period of time.  
initially they thought he is the man. now they think he is a crook

he may not be the only culprit. May be there are many.
I know nothing about this company. I have never invested TW.

All the companies collect millions and billions from outsiders showing future wealth end up in same manner. Directors become billionaires. That's all.

TWOD Shareholders get nothing. Fortunately the liability is limited. Otherwise we will have to pay to the creditors and investors.