Reply to thread

Message: <blockquote data-quote="Truth Hurts" data-source="post: 29752397" data-attributes="member: 477372"><img src="https://i.imgur.com/nYoTMVY.png" alt="" class="fr-fic fr-dii fr-draggable " style="" /><a href="https://economynext.com/sri-lankas-softlogic-says-restructuring-debt-seeking-investors-for-hotels-odel-159494/" target="_blank">ECONOMYNEXT</a> – Sri Lanka’s Softlogic group has begun restructuring its debt and is seeking investors for hotels and ODEL retail project, while also selling off assets, according to its annual report for the year to March 2023.Softlogic group, which has interests in retail, hotels, finance and healthcare, posted a loss of 24.07 billion rupees for the year to March 2023, up from 8.1 billion a year earlier.Group revenues including insurance fell to 96.8 billion rupees from 111.2 billion rupees, according to accounts qualified by the auditors.Net finance costs were 20.9 billion rupees as interest rates rose on the heavily leveraged group. Forex losses of 4.0 billion contributed to the finance costs.The group had 42 billion rupees in long term borrowings by end March 2023, up from 38.6 billion and overdrafts of 9.3 billion, up from 6.6 billion rupees.The group is trying to raise cash and cut borrowings.“One key strategy is the disposal of identified assets, phasing out certain sectors of the Group, and infusing equity,” Chairman Ashok Pathirage told shareholders.“We are also exploring alternative financing sources, including sector-specific equity in Retail and Healthcare Services.”The group was looking to sell its hotels including Colombo’s Movenpick or get equity investors. Investors were also sought for ODEL Mall project, which is partially built.“Recent revival in the country’s economy have reinvigorated talks with crucial investors, whose decisions are pending until the country concludes its foreign debt restructuring programme,” Pathirage said.“Furthermore, as an immediate measure to ease the Group’s liquidity, we are renegotiating debt repayment plans with lending institutions and restructuring them pending our fundraising activities.”About 1.2 billion rupees in interest waivers have been negotiated and 11 billion rupees in debt have been re-structured, the firm said.About 3.5 billion rupees of other assets have been earmarked for sale.Softlogic Holdings has announced a 10 billion rupee share and warrant offer.Key shareholders, Pathirage and Samena Ceylon Holdings Limited have indicated that they will subscribe to the shares and warrants, the annual report said.Softlogic’s auditors have qualified the accounts on 125 million rupees allocated to a suspense account after changes were made to the accounts of a subsidiary.A loss of 23.6 billion in the yar to March 2023, for the year ended 31 March 2023 and as of that date,The group’s current liabilities exceeded current assets by 70.597 billion by March 2023, reported losses were 51.5 billion rupees and net assets were negative by 17.8 billion rupees.As a result “a material uncertainty exists which may cast significant doubt on the Group’s ability to continue as a going concern without continued financial support from the financial institutions,” auditors said.Auditors also highlighted several ‘key audit matters’ relating to revenue recognition, classification of borrowings, insurance liabilities, credit losses, carrying value of the ODEL Mall project and possible impairments. (Colombo/Apr20/2024)</blockquote>

Verification: Asuwa dahayen wadi kalama keeyada?

Top Bottom