Asset Sales

Dec 20, 2009 (LBO) – Court appointed officials liquidating assets of Golden Key Credit Card Company, a failed finance firm in Sri Lanka’s Ceylinco group, are planning an auction of assets, and offers have been received for the sale of a hospital, a media report said. The Sunday Island newspaper said several offers have been received for Golden Key ENT hospital, which has been valued at more than 1.5 billion rupees.

A Sri Lankan private hospital and several foreign investors have expressed interest, the report said quoting an unnamed official involved in the liquidation.

A satellite earth station valued at 500 million rupees sitting on a two acre plus land, a teak plantation and a tea factory owned by Golden Key would also be advertised for sale.

An auction of vehicles and furniture would take place shortly, the report quoted the official as saying.

Shares held by Ceylinco chief Lalith Kotelawala would be transferred to a special purpose vehicle to be eventually sold.

Golden Key assets are being liquidated under orders from Sri Lanka’s Supreme Court after defaulted depositors in the unregulated firm went to court after the firm collapsed late in 2008, after promising high interest, triggering a run on other firms in the group.