Vanik on the mat after failing to meet interest payments for debentureholders

The Trustee of Vanik debentureholders have asked the Colombo Stock Exchange to take action against the company for failing to honour its interest payments. The Trustee of Vanik debentureholders have asked the Colombo Stock Exchange to take action against the company for failing to honour its interest payments. Trustees Secretarius (Pvt) Ltd said the third installment of interest payments (for the period 10.12.2002) were due on October 10, 2004.

The payment decision, the Trustee said in a statement on Monday, was taken during a debentureholders meeting on August 6.

At that meeting, Vanik Inc. had agreed to abide by the terms of the Trust Deed, which included initiating appropriate action in the event of a default.

“The non-payment of interest, as intimated to you by Vanik, constitutes a default on the part of the company,” the statement said.

As Trustees to the debentureholders, Secretarius (Pvt) Ltd will also initiate immediate action against Vanik Inc.

Vanik had earlier issued 9.3 mn unsecured debentures which carried a 15 percent interest rate.

Justin Meegoda, Vanik’s chief, had earlier informed the stock exchange of the company’s inability to meet interest payments.

-LBO Newsdesk: LBOEmail@vanguardlanka.com