Thursday, 28 November 2019 05:58

CB says TFC still to submit an acceptable investment proposal

The now defunct The Finance Company (TFC) is still to submit an acceptable investment proposal for the consideration of the Central Bank enabling it to withdraw the notice of cancelation of its licence to operate as a non bank financial institution.

The CB issued a notice of cancellation of the licence granted to TFC to carry on finance business under the Finance Business Act No. 42 of 2011 (FBA) on 23rd October 2019.

It also informed that in terms of the provisions of the FBA, the company has the right to submit an acceptable proposal for investment in TFC along with proof of funds for capital infusion and a Business Restructuring Plan for the consideration of the CBSL within 30 days from the date of issuance of such notice.

However Central Bank has not been informed about express of interest made by three interested parties to consider investing in the company.

Even though it has been reported in media that TFC informed the Colombo Stock Exchange (CSE) that it has been approached by three interested parties to consider investing in the company, no such proposals have been submitted to the CBL, so far.

CBS announced that in terms of the FBA, the Monetary Board shall take a decision on the notice of cancellation issued to TFC after the expiration of 60 days from the date of notice of cancellation

The Monetary Board of the Central Bank on October 23, 2019 issued a Notice of Cancellation of licence on TFC due to the severe liquidity crisis faced by the company.

However, The Board of Directors of TFC submitted its objection on 14th November 2019 for the "Notice of Cancellation" issued on TFC under the provision made in section 37 of FBA, which the company deem to consider as unessential, as it was facilitating the potential investors locally and overseas and some discussions with potential investors were ongoing, the company said.

(LI)

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