Golden Key depositors to appeal for director asset liquidation

Golden Key depositors will file a petition in the Supreme Court requesting an order to liquidate the assets of former Golden Key directors to increase repayment to them.

Golden Key Depositors’ Association President Dushanthi Hapugoda said the Government had agreed to pay 41% to the depositors without considering the private assets owned by the Golden Key directors, insisting that they were liable to the depositors.

“We are going to appeal to the Supreme Court at the next hearing on 25 July to consider the assets owned by the Golden Key directors.

They even have foreign assets and are liable to pay their depositors. We want the Supreme Court to consider this aspect and see if it would be possible to sell their assets and pay more to the depositors,” Hapugoda stated.

After seven long years the Golden Key depositors saw a possible end to their struggle when the Government agreed to repay 41% of their deposits.

Hapugoda expressed her appreciation at the effort taken by Finance Minister Ravi Karunanayake and the Government to recover their money.

“The struggle all the depositors went through for the past seven years finally paid off! We are extremely pleased with the effort taken by the Government and the Minister in finally providing a solution to this issue,” she noted.

She said the Government promised to pay 41% to the depositors according to a repayment plan submitted to the Supreme Court in 2013 and it was not a new settlement scheme.

When asked how the repayment plan would be implemented, she said the Treasury would be granting around Rs. 8.2 billion under the purview of the Finance Minister.

Those who had deposits less than Rs. 2 million would be paid in less than one month, while those who had deposits of Rs. 10 million are to be paid in less than two months. The balance would be paid within one year.

However, she pointed out the Rs. 8.2 billion granted by the Treasury would be balanced against money to be recovered by selling Golden Key and its subsidiary company assets.

Courtesy: Daily Financial Times 22 June 2015