Central Bank says not informed of anyone keen to invest in TFC

The Central Bank yesterday said it had not been submitted any information regarding any potential investors who were considering investments in the troubled The Finance Company 
PLC (TFC).

TFC earlier this week informed the Colombo Stock Exchange (CSE) that three potential investors were keen on injecting funds to the firm “on the basis banking licence could be obtained with sufficient investment”.  

The Central Bank on October 23 issued a notice of cancellation of licence granted to TFC to carry on finance business under the Finance Business Act No.42 of 2011 due to the serious liquidity issues faced by the company.

The Central Bank said TFC 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 its considerations within 30 days from the date of such notice.

Despite TFC’s CSE filing and news reports based on it, the Central Bank maintained that it had not been informed of any potential investors, who would inject liquidity into the beleaguered finance firm.

Hence, the Central Bank yesterday said the Monetary Board would take a decision on the notice of cancellation issued to TFC after the expiration of 60 days from the date of notice of cancellation.