Touchwood submits repayment plan to Court

http://www.cse.lk/cmt/upload_cse_announcements/4471381757683_.pdf

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sriranga wrote:http://www.cse.lk/cmt/upload_cse_announcements/4471381757683_.pdf

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TWOD will touch 6 tomorrow!

Humble wrote:
TWOD will touch 6 tomorrow!

Then it will come down by 31/10/2013. Are you serious?

hmm time to collect then and do a good day trading will see....anyway I will collect tomorrow and try to make some profit...... 

* All customers with maturing Thailand agarwood contracts entered into in Sri Lanka are to be settled within 8 months on a three tier payment scheme

* Full exposure is estimated at Rs. 300 m; claims by agarwood customers serving notice is around Rs. 54 m

* TWOD Chairman and CEO Lanka Wijendra Kiwlegedara submits affidavit to Court assuring cash infusion of Rs. 200 m in three months and $ 10 m in six months from investors/lenders to undertake repayment without selling assets

Touchwood Investments Plc (TWOD) via its lawyers yesterday presented to Commercial High Court a full repayment plan on all maturing agarwood contracts executed in Sri Lanka with regard to plantations in Thailand.

As per the plan, TWOD will pay 100% due to agarwood plantation customers within eight months on the basis of 25% in three months, 25% in five months and the balance 50% in eight months.

When the case (HC Civil 31/2013/CO) was taken up in Commercial High Court of Colombo before Justice C. Morias yesterday, the company has agreed to extend this offer to all agarwood contracts (irrespective of whether their claims have been recorded in this case or not in Commercial High Court.)

Around 26 customers have supported the winding up application and appointment of provisional liquidator filed by customer K.A.D.L. Priyanka Nanayakkara whose claim against TWOD is Rs. 3.8 million.

Court on 3 October granted the company time till 14 October to file its formal objections to the application to appoint a Provisional Liquidator.

TWOD’s exposure on agarwood contracts is estimated at approximately Rs. 300 million and amount due for some of the customers within the 26 who had resorted legal action is around Rs. 54 million.

Given the fact that some within the 26 have local plantation contracts, the Court was told that maturity of those was far off and the company has adequate time.

The repayment plan submitted to Court was embodied in the Statement of Objections filed along with the supporting affidavit deposed to by TWOD Chairman and CEO Lanka Wijendra Kiwlegedara.

His affidavit states that efforts are underway to ensure a cash infusion of Rs. 200 million within three months and a further $ 10 million within six months. Assurance of cash infusion from investors/lenders is to retain assets as they are.

Avindra Rodrigo, Senior Counsel for the Petitioner and several Counsels appearing for the claimants before Court expressed their optimism on the repayment plan and requested Court for time to obtain instructions from their clients. Court fixed the matter to be called on 31 October 2013.

President’s Counsel Dr. Harsha Cabraal appearing for the SEC informed the Court the SEC was taking the same stand that it had on the last date of hearing (3 October) by opposing any application to wind up the Company at this point of time.

President’s Counsel Harsha Amarasekera with Shehan Gunaratne and Tivanka Ekaratne, Attorneys-at-Law, appeared for Touchwood Investments PLC. Avindra Rodrigo, Attorney-at-Law, appeared for the Petitioner.
Previously there have been concerns that TWOD was endeavouring to buy time whilst the petitioner sought provisional liquidator to safeguard assets from being sold.

The company has been beset with acute cash flow problems in recent months forcing resignation of Chairman and Vice Chairperson Mr. and Mrs. Maloney who however remain on the Board. Both are overseas at present. -

The TWOD Board has also seen multiple changes. This, along with ongoing investigations by the SEC, has led to loss of investor and creditor confidence in TWOD.

A pioneer of the agro-forestry investment industry in Sri Lanka, TWOD specialises in the cultivation of the high value exotic tropical timbers as an alternative and sustainable source of forest products.

As per its 2012/13 Annual Report, TWOD has planted over 400 trees of high-value timber in 2,854 acres spanning 42 plantations in six districts. This is in addition to timber plantation in Thailand in which customer deposits have been taken by the company.

As at end FY13, TWOD’s assets amounted to Rs. 8 billion, up from Rs. 6.8 billion in the previous year. Despite styling itself as pioneer and in business for over decade, TWOD remains saddled with over Rs. 500 million worth retained losses. Liabilities amounted to Rs. 4.7 billion as at end FY 13, up from Rs 3.7 billion a year earlier.
http://www.ft.lk/2013/10/15/touchwood-submits-repayment-plan-to-court/

The repayment plan submitted to Court was embodied in the Statement of Objections filed along with the supporting affidavit deposed to by TWOD Chairman and CEO Lanka Wijendra Kiwlegedara.

Now they have to do this. They promise to court....

I personally think TWOD shareholders will have good period now. Guess 50 percent plus return with in three months. Who knows??? It can be 100 percent because of all TWOD shares now changing hand arround 5 level. New platform is required. May be rs. 8 plus.

Touchwood Investments PLC yesterday undertook in courts to repay all matured contracts within a period not exceeding eight months in three instalments, according to the lawyers appeared for the company.

When the case to appoint a provisional liquidator was taken up yesterday for the second hearing at the Commercial High Court Colombo, the company had undertaken to file the repayment plan as earlier instructed by the judge. The lawyers appeared for the company had further filed objection to appointing a provisional liquidator.

“The company agreed to pay all the matured contracts which they had entered into in their repayment plan,” the counsel appeared for Touchwood said.

Despite the total amount due is still being finalized, the payments would be made on a staggered basis.

The initial 25 percent of the total amount due will be made in three months, while another 25 percent will be paid in total of five months, while the balance 50 percent will be made in eight months starting from October 14.

“The company further undertook to file a comprehensive breakdown of the contracts which are already matured and are due to be matured when the case was taken up again on October 31, 2013 for the third hearing,” said the counsel.

Meanwhile, Touchwood Chairman L.W. Kiwlegedara told Mirror Business that they had already started their restructuring process and to that effect, three new appointments including one board appointment had been made at the last board meeting.

“We appointed the former Deputy Chairman Asitha Koralage as our Restructuring Consultant and Tivanka Ekaratne as our Legal Advisor to the board,” he said.

Last week, Touchwood appointed Chamitha Ranneththi, a real estate investment and a property management consultant and the Chairman of RKC Construction and Consultancy Ltd as an Independent Non-Executive Director, following a slew of changes in the board.

“Chamitha’s appointment was made in order to add the right blend of skills into the board,” Kiwlegedara added. (DK)
http://www.dailymirror.lk/business/other/37090-touchwood-to-pay-all-matured-contracts-in-8-months-.html

wow nice analysis
A company took money from public saying they will grow money on trees.
Unfortunately these trees did not bear money ... because the tree were not attended properly.
Now they say they will plant another type of trees that will surely bear money when the trees reach specific age.

But the money they have promised to pay back can not be stopped.

As per the proposal those who buy shares now can very soon subscribe to a rights or warrant or some other financial instrument and help to bail out the poor people who deposited the money several years ago.

i really salute those who buy touchwood shares now for their warm heartly decision to bail out others from their personal money now

yellow knife wrote:wow nice analysis
A company took money from public saying they will grow money on trees.
Unfortunately these trees did not bear money ... because the tree were not attended properly.
Now they say they will plant another type of trees that will surely bear money when the trees reach specific age.

But the money they have promised to pay back can not be stopped.

As per the proposal those who buy shares now can very soon subscribe to a rights or warrant or some other financial instrument and help to bail out the poor people who deposited the money several years ago.

i really salute those who buy touchwood shares now for their warm heartly decision to bail out others from their personal money now

Sums it up nicely..

Now what's happening. Left hand selling right hand. Right hand selling left hand.