Seylan Bank halts parate execution on three Asia Capital hotels

Seylan Bank has agreed to accept the revised settlement offer made by Asia Capital recently, to halt parate executions on Wadduwa Resorts, Beach Resorts Kosgoda and Galle Beach, according to Asia Capital Managing Director Raju Radha.
A sum of US $ 1.25 million has been raised and deposited by Asia Capital PLC. So far, Asia Capital has settled 40 percent dues and the business is well on the way to recovery.
He shared that Asia Capital is currently in the process of rebranding and restarting the hotels.

Meanwhile, Seylan Bank PLC Deputy General Manager Recoveries Eranga Lankatilaka confirmed that the bank has received Rs.375 million (equivalent to US $ 1.25 million) as per the terms agreed in the Settlement Terms Agreed In Courts Under Case Nos CA Writ 635/2023 Wadduwa Resorts (Pvt.) Ltd, CA Writ 636/2023 Beach Resorts Kosgoda (Pvt.) Ltd and CA Writ 637/2023 Galle Beach C C Trust (Pvt.) Ltd, respectively.The legal representation for Asia Capital PLC was made by Saravanan Neelakandan Law Associates. 
Meanwhile, Asia Capital pointed out that there is a considerable debt outstanding for the monies due by Belluna Co. Japan, for professional services rendered two and a half years ago.The company remains concerned as Belluna Co. Japan appears to be stalling in finalising 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, which have been completed and handed over in time.  “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 Department for non-capitalisation 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.He blamed Belluna Co. Japan for its failure to settle its dues as the root cause of the problem.  
“This was brought about by the Japanese partners not paying their dues of US $ 5 million and is trying to abscond. They also have a due of US $ 3 million to the income tax authority, which they are absconding payment as well,” he added.