Business News


The general shareholders of People’s Leasing and Financial Service (PLFS) that is staring at liquidation are likely to lose their entire amount, further raising the stakes for the government to penalize those responsible for driving the company into the ground. As of May 31, retail investors held 68 percent of the non-bank financial institution’s stock, according to the Dhaka Stock Exchange. If the liquidation goes through which will be a first in Bangladesh’s financial sector the general shareholders stand to lose about Tk 193.52 crore and institutional investors Tk 25.75 crore. In the event of liquidation external creditors are paid off first and then the depositors, debenture holders and preferential shareholders in that sequence, according to Mohammad Mohiuddin Ahmed, executive director of Financial Reports Monitoring Division at Financial Reporting Council. The general shareholders’ turn comes in the end, once all parties have been paid off. They get a sum if the net asset value per share is positive. But in PLFS’s case its net asset value or NAV is Tk 67.66 in the negative as of March 31.

“There is no possibility of the shareholders getting anything as PLFS’s NAV per share is so negative,” Ahmed said. Only if the leasing company has properties whose values were shown to be lower than the market values can the shareholders get something. But the possibility is very low.

Source: The Daily Star, 10.07.2019


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