Parate execution on the Wadduwa Resorts (Pvt) Ltd., Beach Resorts Kosgoda (Pvt) Ltd., and Galle Beach respectively was stopped with the Seylan Bank PLC agreeing to accept the revised settlement offer, Asia Capital Plc. Managing Director, Raju Radha said.
A sum of USD 1.25 million has been raised and deposited by Asia Capital PLC. Further, these properties have generated an amount of USD 250,000 in foreign remittances. Also, 40% of the dues are paid so far and the business is well on the way to recovery, Radha said.
In checking with the bank regarding the above, Seylan Bank PLC, Deputy General Manager, Recoveries, Eranga Lankatilaka said the “SETTLEMENT TERMS AGREED IN COURTS UNDER CASE NOʻS CA Writ 635/2023 Wadduwa Resorts(Pvt Ltd., CA Writ 636/2023 Beach Resorts Kosgoda (Pvt) Ltd., and CA Writ 637/2023Galle Beach C C Trust (Pvt) Ltd., respectively”. We hereby confirm that a sum of LKR 375,050,000.00 (equivalent to USD 1,250,000.00) has been received to Account no 0300-33464369-001 of Beach Resorts Kosgoda (Pvt) Ltd. on 26.03.2024 as per the terms agreed in courts under the captioned cases. Legal representation for Asia Capital PLC was made by Saravanan Neelakandan Law Associates.
There is a considerable debt outstanding for the monies due by Belluna Co Japan for professional services rendered two and a half years ago. However, concerns have been raised as Belluna Co Japan appears to be stalling in finalizing the settlement, casting a shadow over its relationship with Asia Capital Plc and raising questions about its financial integrity. An amount of US$ 500,000 is due for professional services rendered though four hotel projects have been completed and handed over in time. “The delay in settling the dues by Belluna Japan is unacceptable and has tarnished the reputation of Asia Capital Plc,” said a spokesperson from Asia Capital Plc. “We expect our clients to uphold their financial commitments with the utmost diligence and transparency.” As we are no longer partners, Belluna Co Japan has to settle a penalty of US$ 3 million imposed by the Inland Revenue Dept. for non-capitalization of the investment brought in. This has resulted in decreasing the value of the shares which otherwise should be valued at around US$ 10 million Radha said.
Finally commenting on the recovery plan Radha said, we are in the process of rebranding and restarting the hotels. On the question of the root cause of the problem Radha said, this was brought about by the Japanese partners not paying their dues of USD 5 million and are trying to abscond. They also have a due of USD 3 million to the Income Tax authority which they are absconding payment as well.
