October 2, 2019 (LBO) – Embattled construction firm MTD Walkers (KAPI) has reported a loss for the June quarter of approximately Rs1bn, and its equity base has been almost completely wiped out.
Trading in the CSE listed KAPI has been halted for some time as the company has been in violation of regulatory guidelines and been teetering on a financial implosion. Revenue was down 60% in the quarter as the company’s businesses are slowly grinding to a halt.
As of late there has been a disclosure regarding a takeover of the firm by casino operator Ravi Wijeratne. It is unclear whether banks will balk at or support the transaction as they are collectively on the hook for close to Rs30bn in debts. Banks may prefer a liquidation of the firm instead of a takeover by an unscrupulous operator.
As of the end of the June 30, 2019 quarter, KAPI is supporting a balance sheet with assets of Rs37bn on just Rs100mn worth of equity. The collapse of MTD Walkers is likely to be one of the largest corporate failures in the history of Sri Lanka. The company has accumulated losses of over Rs6bn to date.