In an urgent motion to the SEC, VMC said the vacuum in the mancom needs to be filled up to speed up the debt restructuring and rehabilitation of the sugar company.
Villegas, president of the University of Asia and the Pacific, and also chairman of the VMC board, will take over the post vacated by Manuel Mañalac, who resigned as VMC president, CEO, director, and mancom member last Jan. 31.
This developed even as the issue on the appointment of VMC’s chief operating officer (COO) remains on a standstill. The VMC board recently lashed back at an SEC ruling upholding the appointment of former National Development Co. general manager Arthur Aguilar as COO last Dec. 28, 2000.
VMC director and chief financial officer Romeo Hermoso said the VMC mancom went beyond its limitations as an oversight committee in appointing Aguilar who is also not qualified being not a present and regular VMC employee.
"To oversee is to supervise, which is different from the power of control," he said.
Hermoso said the power to appoint a COO rests solely on the board, which exercised this function with the designation of Abelardo Bugay as COO last Jan. 8.
The SEC earlier denied VMC’s petition to put on hold the appointment of a COO and maintain a status quo of the company’s operations for being devoid of merit.
The SEC said issuing a TRO would defeat the very purpose of the rehabilitation of VMC because the prior orders pertain to the suspension of VMC’s debt payments as well as its rehabilitation.
"A temporary restraining order would allow the creditors to demand payment on their claims and to foreclose on the assets of the corporation which are needed in its rehabilitation," the SEC said.
But VMC said without the TRO, it will suffer irreparable injuries, among others, the possibility of the refusal of sugar planters to mill with VMC as many of them have expressed the desire that pending final resolution of all issues, the status quo be maintained. – Conrado Diaz Jr.