Sri Lanka's MTD Walkers delays bond interest, bank puts mortgaged assets for sale
May 02, 2019 14:21 PM GMT+0530 | 1 Comment(s)
ECONOMYNEXT- Sri Lanka's troubled construction firm MTD Walkers Plc has delayed interest payments on its debentures, while assets mortgaged by its subsidiary CML MTD Construction (Pvt) Ltd have been put up for auction by a bank.
Interest on MTD Walkers listed bonds are in arrears from March 31.
A stock market disclosure said that although it had a new deadline on April 30 to pay interest, it will now be delayed, as collecting revenue has become a challenge following the Easter Sunday bombings.
"We are unable to meet this deadline due to the prevalent situation in the country, which is affecting the collections," the firm said.
"Every effort was made to collect the anticipated revenue for the settlement of debenture interest to meet the payment on due date."
MTD Walkers said that they are now expecting to make the payments before May 20, with a penal interest rate of 2 percent.
Meanwhile, Sampath Bank's directors had passed a resolution to liquidate properties mortgaged by MTD Walkers subsidiary CML MTD Construction for borrowings of over 675 million rupees, according to a newspaper notice on April 30. (Colombo/May02/2019-SB)