Restructuring Exercise:


Restructuring of Samson & Co. (Pvt.) Ltd, one time a leading Garment Industry, fell sick  mainly due to over-gearing and unsettled liability to its Bank. This Industry sought the assistance of the IRC (Pvt.) Ltd. ,  which undertook to restructure it and make it a viable venture.

As a first step, IRC identified some unimportant assets in the form of land and buildings and advised  the management to dispose them   without delay in order to bring down the debt component of the Industry to a manageable level.

Since the garment industry has a bleak  future in the absence of the GSP + facility, Samson & Co. (Pvt) Ltd is being put on a diversifying process by entering into partnership with an Electronic Co. which has a better business potential.  In addition some of the buildings are being given on a short-term lease basis to maintain an uninterrupted cash-flow to meet the Bank loan instalments and maintenance of the Office and some other assets of the Industry .A fresh plan is being drawn to diversity into the hospitality industry which has great potential and future in Sri Lanka.(June 2011 - on-going).

Since the expected development programme has not worked out  to the full expectation,  IRC negotiated with the Bank concerned to pay off the mortgage by disposing the mortgaged property to another Company for its use.  This process is being done at the moment and once this mortgage is settled in full,  Samson & Co. will be looking forward to engage in a Recycling Project  with a foreign Partner from Germany.  It is expected to overcome all liabilities and to start a new venture afresh by May 20`12.  (Feb. 2012)

However, the debt component  has not been manageable for Samson & Co and as a result, IRC (Pvt.) Ltd has to look for another Investor to overcome the mortgage burden.  Edna Group has been brought in by IRC (Pvt) Ltd who took over another property belonging to the Samson Group to settle the mortgage with the Peoples Bank.  Today Samson Group is looking for an Environment Friendly Project to be started on a 15 acre land belonging to the Group around Colombo.  A Hotel Project is already identified on a JV Partnership basis with a foreign Investor.  Negotiation is handled by IRC (Pvt.) Ltd at the moment and it is expected  to finalize the negotiation by June 2013. (February 2013).

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