Ceylinco Shriram settles 60% in cash to 75% of investors

Ceylinco Shriram has successfully made payments to 4,330, nearly 75 percent, of their investors amounting to over 60 percent of their deposits in cash, as at now. The balance 1,443 (25 percent) of the investors have received payments averaging to over 20 percent of their investments in cash, sources said.

The payments have been made in compliance with the payment plan submitted by the Board of Directors of Ceylinco Shriram to the Courts and its investors. The payment plan was prepared, with the interest calculated up to the time of formulating the settlement plan, and included in the repayment amounts, a reliable source confirmed.

The same source reveals that a staggering Rs 800 million is due to Ceylinco Shriram from the Celestial Towers project as repayment of the loan given to them along with the interest due for this loan. According to the proposed plan, this amount is to be utilized to pay a further 40 percent to the 25 percent of the depositors who have received averaging to 20 percent of their money invested.

In addition to the said loan given to Celestial Towers, 55 percent of the ownership of the Celestial Tower project is held by Ceylinco Shriram. If this stake could be realized at the present market value, the entire amount could be utilized to pay the investors far beyond the promised 60 percent.

Sources point out that the payment plan was on course and that Ceylinco Shriram was confident of delivering the promise made to the investors that 60 percent of the money invested would be settled. Further, the Supreme Court recently approved another Rs 200 million to be paid to the investors by the 15th of April 2013 as the 5th installment.

Ceylinco Shriram was the first, and one among the few companies, to present a practical and a realistic payment plan that addressed the concerns of the investors. The Directors of Ceylinco Shriram were committed to seeing every investor is settled, understanding their plight, which many felt was reflected in the payment plan presented, the source said.

Ceylinco Shriram had to face a situation beyond its control, and succumb to the domino effect of the collapse of Golden Key and other Ceylinco Group companies. Ceylinco Shriram continued to pay all investors their dues until December 2008 especially at a time when many financial giants worldwide experienced set backs due the changing dynamics of the industry. Even after the crisis, the company always strove to maintain a productive dialogue with the investors and took their views in preparing the payment plan.

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