The state-owned power monopoly is evaluating a proposal by NatWealth Corp. to help restructure nearly Rs. 20.0 bn of its debts. The state-owned power monopoly is evaluating a proposal by NatWealth Corp. to help restructure nearly Rs. 20.0 bn of its debts. The long-term debt stock, carries varying rates of interest between 10 percent to 13 percent.
CEB Chairman Ananda Gunasekera says the proposal has been accepted in principle, but will be ratified at this week’s Board Meeting.
“The proposal has been informally accepted. We have said in our ongoing plans that we need to enlist a full time fund manager to help us manage our debts,” Gunasekera said.
CEB’s total liabilities including long and short term debt are expected to hit Rs. 86.0 bn by end 2004, while post tax losses will climb to Rs. 9.5 bn from Rs. 3.6 bn in 2003, Gunasekera said in an earlier interview.
Short-term liabilities will go up to Rs. 36,087 mn by end 2004, which includes a 13,208 mn overdraft, Rs. 10,277 mn in short-term borrowings, Rs. 11,540 mn by way of dues to the Treasury and Rs. 1,062 mn to fund its ongoing pension liabilities.