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| Sunday, 17 March 2002 |
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| News Business Features Editorial
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Debt-ridden BMC to be restructured by Ramani Kangaraarachchi The Building Material Corporation (BMC) has been able to recover Rs. 10 million during the last two weeks through an island-wide sale it had conducted to dispose material that had been lying stagnant for several years. As a step towards restructuring the BMC which has been plagued by mounting debts to State and private banks exceeding 300 million rupees, BMC's newly appointed Chairman, Major General Sarath Munasinghe launched a massive clearance sale from March 1 to 31. The Chairman said the BMC's total indebtedness to banks and other businesses amounts to Rs. 309 million. The three banks are the Bank of Ceylon, Hatton National Bank and Pan Asia Bank. The BMC has also defaulted Rs. 10 million over four to five years to the Sri Lanka Insurance Corporation. It also owes Rs. 7 million to the Inland Revenue Department. Meanwhile, it is learnt that the Bank of Ceylon has acquired a part of its mortgaged property at Sangaraja Mawatha, Colombo belonging to the BMC head office due to its inability to repay the loan. Even BMC's Kandy branch is said to have been mortgaged for Rs. 12 million. The Corporation has been unable to pay back some of these loans which have been obtained at 28 per cent interest. Apart from this, imported goods like wood, sewing-machines, and other items worth Rs. 240 million have been lying at the BMC stores, blocking the cash flow to the BMC, the Chairman said. Chairman Munasinghe outlined his plans to revive the BMC by recovering at least Rs. 100 million through the clearance sale to repay some of these loans. |
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