Anunine Holdings, a vastly diversified group of companies headquartered in Panadura and headed by Deshamanya Anurath Abeyratne has stepped into buy 91% controlling stake MTD Walkers PLC with an investment of over US$ 8 million despite legal tangles of Sri Lanka’s colonial era construction company.
A very strong and financially sound consortium of Indian and Japanese investors who have taken up the challenge of giving a face-lift to MTD Walkers PLC, infusing US $25 million has backed down from the deal following the ongoing recovery action being taken by several banks, against the listed corporate.
High Court Judge R. Gurusinghe has recently issued four enjoining orders on MTD Walkers PLC in cases filed by four private banks claiming that MTD Walkers owed them money amounting to billions of rupees.
Amidst the enjoining orders, Malaysia based MTD Capital Bhd has decided to divest the entirety of its 91% controlling stake in Sri Lanka’s MTD Walkers PLC.
The troubled construction firm has transferred three of its subsidiaries to its Malaysian parent, MTD Capital Berhard, for a purchase consideration of little over US $ 19 million, to settle a debt payable by one of its subsidiaries, Colombo Stock Market sources revealed.
MTD Walkers said the related party transaction was carried out on January 11, 2019. MTD Capital Berhard owns 90.78 percent of MTD Walkers PLC.
Anunine Holdings has pledged to settle all liabilities of MTD Walkers within a stipulated period.
Meanwhile Sri Lanka government is compelled to repay the accumulated massive dues it indebted to the now troubled company facing liquidity and legal issues, informed stock market sources said.
The construction company has become a victim of the delayed and non-payment of dues by the government for mega construction projects and the generally poor sentiments in the country’s construction sector.
According to the firm’s annual report, whopping Rs.22 billion is due from trade and other receivables.
ICRA Lanka rating in a report in September, last year, said Rs.6.0 billion is due from the Urban Development Authority to MTD Walkers for three housing development projects, which had already been handed over upon completion.