Court Halts Winding-Up Case against SriLankan Airlines

A Sri Lanka court has extended an enjoyning order preventing SriLankan Airlines being wound up over a bond default till July 30, legal sources said.

Lawyers for the Trustee of the bond have sought time to file answers after the airline got an enjoyning order preventing any action to wind it up.

Representatives acting for the Trustees of the bond had earlier demanded full payment of 209 million dollars on defaulted 175 million dollar bond and interest and indicated that they would seek to wind up SriLankan Airlines.

Lawyers for SriLanka told court that under Sri Lanka company law, the representatives have no standing to wind up the airline, and the government was in negotiations with the bondholders

 

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