July, 7, 2018
Former Mackwoods group owned now Damro Group owned Agalawatte Plantations PLC (AGAL) in a disclosure to Colombo Stock Exchange (CSE) said that in reference to the Extraordinary General Meeting (EGM) that was scheduled to held on the 5th July 2018 was postponed due to an interim order granted by the Commercial High Court Holden in Colombo in case number HC CIvil 47/18CO; and further that company was unable to take up any of the resolutions to approve the matters specified in the shareholder notices dated May 28 2018 and June 14 2018.
The company further added that the said case is scheduled to be next heard by the Commercial High Court on 18th July 2018 and that the Extraordinary General Meeting (EGM) have been adjourned to July 26th 2018 to be held at the same venue at the same time subject to decision of the court on the said matter.
The disclosure also noted that AGAL will make a further announcement pertaining to the matters contained in the aforementioned shareholders resolutions including the Rights Issue upon receiving the decision of the court.
AGAL notified shareholders of the company on 28th May 2018 and 14th June 2018 via circulars and also the CSE on issuing 131.25 million ordinary voting shares at a price of Rs. 15.30 per share as a Rights Issue to raise over Rs. 2 billion to retire debt owed to related parties of Damitha Ramanayake lead Damro Group subsidiaries that funded Gratuity payments, EPF payments of AGAL etc, that had not been paid for many years by the Mackwoods group.
According Reports in 2016 AGAL’s controlling stake held by Mackwoods Plantations was ‘unilaterally’ sold by Dr. Chris Nonis to LOLC controlled Browns group, but Browns sold it immediately in less than a year in March 2017 to Damro group due to the heavy debt and financial losses that were accumulated from Mackwoods management.
The reports noted that that the Commercial High Court of Colombo on 4th July 2018 issued an Interim Order against the Defendant Agalawatte Plantations, in which High Court Judge Rathnapriya Gurusinghe issued the interim order pursuant to civil action initiated by the petitioners Mackwoods. The order is operative until the final determination of this petition. The Registrar is directed to convey the interim orders to the respondents over the phone. Chandaka Jayasundara PC, with Luxman Jayakumar, Rohan Almeida and Rishmi Fernando, instructed by Sanjaya Fonseka, appeared for the petitioners.
- Reporting by Devendra Francis
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