Dr. Senthilverl moves to wind up Orient Garments PLC

[First Guy]

A high net worth investor, Dr. Thirugnanasambandar Senthilverl has moved to have Orient Garments PLC compulsorily wound up by Court. Dr. Senthilverl is the single largest shareholder as well as a Director of Orient Garments PLC.

Dr. Senthilverl had previously called for a Board meeting of Orient Garments to have the same liquidated by Court under Section 219 of the Companies Act. However, as the other Directors did not agree to apply to Court for a winding up, Dr. Senthilverl has now presented a petition to the Commercial High Court of Colombo to compulsorily wind up Orient Garments PLC.

The petitioner, Dr. Senthilverl has stated in the petition that Orient Garments’ current assets are less than the current liabilities and that the company lacks working capital to continue day-to-day operations and that bank overdrafts have been obtained to pay worker salaries.

Orient Garments in desperation sought to infuse capital by way of a rights issue. However, the majority of the shareholders, 56% of the shareholders present and voting, voted against the rights issue, leading to its defeat. As such, without the money expected from the rights issue, the company is not able to pay its creditors.

In those circumstances, after hearing the submissions of Counsel appearing on behalf of Dr. Senthilverl, Avindra Rodrigo with Shanaka Gunasekara and Ananda Tikiriratna instructed by F J & G De Saram, the Commercial High Court Judge Amendra Seneviratne fixed the petition for hearing on 4 June and directed the copy of the petition to be served on the company and be published in newspapers and in Government gazette when the matter was taken up in the Commercial High Court of Colombo yesterday.

http://www.ft.lk/2015/02/24/dr-senthilverl-moves-to-wind-up-orient-garments-plc/

[First Guy]

NAV per share is less than 7.75/- and in another two quarters might come down to around 5/- levels

Adam Investments have almost 40% remaining. They have sold some quantity late last year at 15+ levels. Can we expect a dump?

[WasteofTime]

OGL transaction led PCH group to collapse, Adam Group may collapse next.
Investors including senthil have burnt fingers investing in PCH and OGL.
The real winner out of this transaction was FINCO who wisely used transaction money to invest in hotel, electricity and other sectors.

I feel sorry for workers who had been working there for many years who has no opportunity to switch their career now.

[nihal123Top contributor]

24-Feb-2015
OGL.N0000 - Trading Halt
Please note that the CSE has imposed a Trading Halt on OGL.N0000 pending a clarification from the company regarding a press article.

http://www.cse.lk/corporate_disclosures_more.do#11168

[Hawk Eye]

Actually case has to be filed against Rishan and Board of Directors that time.

There were Board Directors such as Mangala Boyagoda, Wickramanayake who are well known and reputed in the banking circles

They have failed in all aspects of their duties as directors, keeping quiet knowing everything

[smallvilleTop contributor]

OGL transaction led PCH group to collapse, Adam Group may collapse next.
Investors including senthil have burnt fingers investing in PCH and OGL.
The real winner out of this transaction was FINCO who wisely used  transaction money to invest in hotel, electricity and other sectors.

I  feel sorry for workers who had been working there for many years  who has no opportunity to switch their career now.

If u check Senthil's investments, lately he has done so many crazy work. Just out of the blue he invested in TFL @ 44 or 45 now its below 20.. PCH, OGL has no hope at all.

I doubt whether he's involved in Money laundering.. why he burn so much of money?

[Jana1Top contributor]

I doubt whether he's involved in Money laundering.. why he burn so much of money?

I don't know about his money laundering stuffs, but this guy was pretty rich when he gets into market. His investment mainly driven by broker's recommendations..

He caught up in many deals but finally he gets out of it at right time. For PCH investment he mentioned that Rishan was friend of him therefore he helped.

[WasteofTime]

I think he made all this money when market was controlled by few affluent people 5-8 years ago. With the introduction of online trading, half a million people also joining trading after defeat of Ltte have changed the market playing field. Therefore, he may be finding difficult to stick to his old trading rules now.

OGL transaction led PCH group to collapse, Adam Group may collapse next.
Investors including senthil have burnt fingers investing in PCH and OGL.
The real winner out of this transaction was FINCO who wisely used  transaction money to invest in hotel, electricity and other sectors.

I  feel sorry for workers who had been working there for many years  who has no opportunity to switch their career now.

If u check Senthil's investments, lately he has done so many crazy work. Just out of the blue he invested in TFL @ 44 or 45 now its below 20.. PCH, OGL has no hope at all.

I doubt whether he's involved in Money laundering.. why he burn so much of money?

[First Guy]

Orient Garments Plc (OGL) said yesterday that its Board of Directors except Dr. Senthilverl had overwhelmingly voted to continue to support the growth and revival of the company at a previous Board meeting.

“It had vehemently and successfully opposed Dr. Senthilverl’s resolution to wind up the company,” OGL revealed in a filing to CSE in response to news that Dr. Senthilverl had made an application to the Commercial High Court of Colombo for the same purpose, and went on to say that the majority of the Board of Directors, ‘being confident that the company could continue with its affairs,’ had voted against such resolution.

A spokesperson for Adam Investments PLC (AINV), the second largest shareholder managing OGL, dismissed this application as a “silly, senile and senseless ploy with no purpose”.

“As the largest shareholder, a liquidation will hurt him the most. Why then? Only thing is, it stops the revival and growth of a great company.”
The spokesperson did not wish to elaborate further.

OGL share price closed down by 10% to Rs. 13.10.

http://www.ft.lk/2015/02/25/ogl-board-responds-to-winding-up-case/

[First Guy]

OGL transaction led PCH group to collapse, Adam Group may collapse next.
Investors including senthil have burnt fingers investing in PCH and OGL.
The real winner out of this transaction was FINCO who wisely used  transaction money to invest in hotel, electricity and other sectors.

I  feel sorry for workers who had been working there for many years  who has no opportunity to switch their career now.

If u check Senthil's investments, lately he has done so many crazy work. Just out of the blue he invested in TFL @ 44 or 45 now its below 20.. PCH, OGL has no hope at all.

I doubt whether he's involved in Money laundering.. why he burn so much of money?

He is not involved in money laundering. As I know he's quite an ethical man which at times may have not worked for him.

There are several brokers advising him. He has made a lot of investments. Some are bound to go bad. He has some real winners and some real losers.

[First Guy]

“As the largest shareholder, a liquidation will hurt him the most. Why then? Only thing is, it stops the revival and growth of a great company.”
The spokesperson did not wish to elaborate further.

OGL share price closed down by 10% to Rs. 13.10.

http://www.ft.lk/2015/02/25/ogl-board-responds-to-winding-up-case/

What do you think? Is he trying to stop the revival of a 'great' company?