Rescue Services

UK’s Begbies Traynor Thursday teamed up with Sri Lanka’s Capital Reach Holdings to form the island’s first business turnaround and rescue services, officials said. UK’s Begbies Traynor Thursday teamed up with Sri Lanka’s Capital Reach Holdings to form the island’s first business turnaround and rescue services, officials said. The new entity, BT CapReach, will work with local financial institutions and borrowers to help turnaround struggling commercial firms.

Despite an average five-percent economic growth, some Sri Lankan firms remain undercapitalised or commercially unsound, Mayura Fernando, Managing Director Capital Reach Holdings told reporters.

He said the local banking sector too faced similar difficulties, with non-performing loans as a percentage of assets climbing to a high of 10-percent or about Rs. 98 billion.

Some of the biggest challenges that restructuring experts come across is the absence of specific laws, management denying a firm’s difficulty and constant changes in government policy.

“I think management denial is the biggest challenge so far,” says Nick Hood, Senior London Partner of Begbies Traynor.

“When firm fal