Asia Capital stops parate action auctioning via revised settlement

Auctioning of properties of Wadduwa Resorts, Beach Resorts Kosgoda and Galle Beach via parate action scheduled for yesterday was stopped with the Seylan Bank PLC agreeing to accept the revised settlement offer, Asia Capital Plc.

Asia Capital Plc Managing Director Raju Radha said USD 1.25 million was raised and deposited by the Company as part of the settlement. 

Further, these properties have generated an amount of USD 250,000 in foreign remittances. Also, 40% of the dues are paid so far and the business is well on the way to recovery, Radha added.

Seylan Bank PLC, Deputy General Manager, Recoveries, Eranga Lankatilaka said regarding the “Settlement Terms Agreed In Courts Under Case Nos: CA Writ 635/2023 Wadduwa Resorts Ltd., CA Writ 636/2023 Beach Resorts Kosgoda Ltd., and CA Writ 637/2023Galle Beach C C Trust Ltd., respectively,” the Bank received Rs. 375,050,000.00 (equivalent to USD 1,250,000.00) to Account no 0300-33464369-001 of Beach Resorts Kosgoda Ltd. on 26.03.2024 as per the terms agreed in courts under the captioned cases. Legal representation for Asia Capital PLC was made by Saravanan Neelakandan Law Associates. 

There is a considerable debt outstanding for the monies due by Belluna Co Japan for professional services rendered two and a half years ago. However, concerns have been raised as Belluna Co Japan appears to be stalling in finalising the settlement, casting a shadow over its relationship with Asia Capital Plc and raising questions about its financial integrity.

An amount of US$ 500,000 is due for professional services rendered through four hotel projects that have been completed and handed over in time.

«The delay in settling the dues by Belluna Japan is unacceptable and has tarnished the reputation of Asia Capital Plc,» Radha said. «We expect our clients to uphold their financial commitments with the utmost diligence and transparency.»

As Asia Capital Plc is no longer partners, Belluna Co Japan has to settle a penalty of US$ 3 million imposed by the Inland Revenue Department for non-capitalisation of the investment brought in. This has resulted in decreasing the value of the shares which otherwise should be valued at around US$ 10 million Radha added.

Commenting on the recovery plan Radha said: “We are in the process of rebranding and restarting the hotels. On the question of the root cause of the problem Radha said, this was brought about by the Japanese partners not paying their dues of USD 5 million and are trying to abscond. They also have USD 3 million due to the Inland Revenue Department.”