Krrish Square to remain in limbo until liquidation

• Major creditor of Krrish Transworks Colombo files for Krrish Transworks’ winding-up
• Investor invitations likely once liquidator identifies company’s liabilities 

The Krrish Square project is expected to be stuck in limbo until the liquidation processes relating to Krrish Transworks Colombo Ltd. are completed, according to sources from the Urban Development Authority (UDA).

The Sunday Morning Business learns from high-ranking sources in the UDA that a major creditor of Krrish Transworks Colombo Ltd., the local entity behind the Krrish Square project, has filed for the company’s winding-up. Consequently, the court has appointed a liquidator to manage the company’s affairs.

“The company (Krrish Transworks) is under liquidation, so now the power to manage the company is with the liquidator. The liquidation process has progressed significantly,” the source stated.

Commenting further, he stated that once the liquidator identified the company’s liabilities, they may invite new investors to take over the project, considering that progress had stalled due to funding issues on the part of the current investor.

He further revealed that the UDA would have to wait until the liquidation process was completed before making a decision, as reclaiming the land leased for the project would be complicated by the liabilities owed to individuals who had already purchased apartments.

The developer, Krrish Transworks Colombo Ltd., the local company of the Krrish Group, had entered into a lease agreement with the UDA in 2012 for 99 years at Rs. 5 billion for the Krrish Square project.

The proposed development was expected to be a large-scale mixed development consisting of high-end residential towers, commercial and retail spaces, and a seven-star hotel.

The development was to also contain the Transworks Building, a heritage site, which was to retain its architectural character and be converted into a luxury boutique hotel.

Source: The morning