Galadari Hotels (Lanka) PLC is implementing a
restructuring plan which includes converting part of the large loan it
carries into equity resulting in the net asset value of the company
improving, the company has reported in a Stock Exchange filing.
It said that this was the view of its board which met on
January 19 and also reported that the board has already approved the
conversion into equity of a government loan of Rs.534.2 million as well as
slightly over Rs.1.2 billion due to Galadari Brothers Company LLC.
Accordingly, the board has taken the view that the implications of
Section 220 of the Companies Act No.7 of 2007 which requires a company to
get shareholder approval to remain in business if its net assets are below
half its stated capital will not affect it.
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