Entrust infuses Rs 2.5 b to revive TSCFL

The Standard Credit Finance Limited (TSCFL), a licensed finance company has been revived by the Entrust Group.

TSCFL was previously known as Ceylinco Investments and Realty Ltd. (CIRL). Its principal lines of business included finance leasing, hire purchase, security loans, personal loans and land easy payments and acceptance of fixed deposits from the public.

During the Ceylinco crisis, in March 2009, Lankaputhra Development Bank was appointed as the managing agent by the Monetary Board of the Central Bank to manage the company.

The Merchant Bank of Sri Lanka took over as the Managing Agent in September 2009 and in 2010, the Company underwent another name change. It was renamed The Standard Credit Lanka Limited.

The Entrust Group which, is also an aggrieved creditor had initially advanced Rs. 384 million to TSCFL before the crisis and in the process of recovering its dues, the Monetary Board upon accepting the submitted restructuring plan invited Entrust Limited to sign a Memorandum of Understanding with TSCFL.

Since April 1, 2011 the two companies have formulated and implemented plans to safeguard the interest of depositors.

A spokesperson for the group said that based on the ongoing financial sector consolidation program and to comply with the directions issued by the Monetary Board, Entrust Group had to infuse an additional capital of Rs. 2.5 billion to TSCFL and this process was successfully concluded.

With the infusion of capital, the company will have a positive NAV of Rs. 2.2 billion. With Entrust group's proposed structured financing plans, TSCFL's total assets will reach Rs. 7 billion.

TSCFL which was initially known as Panadura Finance and Enterprises Ltd, has a history of almost forty-five years and the is proud to place on record its accomplishment in the revival of this finance company, the spokesman said.