Ceylon Hotels Corp to reduce capital to clear carry forward losses

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July 07, 2016 (LBO) – Ceylon Hotels Corporation has called an EGM in September to seek shareholder approval for the reduction of its stated capital to wipe off their carry forward losses.

The directors have proposed to reduce the stated capital of the company from 1.22 billion rupees to 198.5 million rupees while setting off a carry forward loss of 1.02 billion rupees.

“The losses adversely affect the Company’s ability to pay a dividend to its shareholders,” the company said in a stock exchange filing.

“Furthermore, the ‘Solvency Test’ requirements have to be satisfied prior to any dividend distribution in the future.”

The company had 171,825,401 ordinary shares and a carry forward loss of 1.02 billion rupees by the end of March 2016.