In separate disclosures to the Philippine Stock Exchange, two listed firms William, Gothong & Aboitiz Inc. (WG&A) and Pacemco Holdings Inc. said they would be undertaking quasi-reorganization upon approval by the Securities and Exchange Commission (SEC).
There are still a sizable number of debt-saddled companies under receivership by the SEC since the Asian financial crisis.
These include property and retail chain Uniwide Holdings, sugar miller Victorias Milling, property developer ASB Holdings, steel maker National Steel Corp. and financing institutions Urban Bank, Urbancorp Investments and Wincorp Investments.
WG&A chief information officer Susan Valdez said the companys board had unanimously approved a resolution to apply for a quasi-reorganization which would wipe out the shipping lines P647 million deficit with an additional paid-in surplus of P3.9 billion.
She said aside from the recapitalization, the company will convert a certain number of common shares of all stockholders into preferred shares with redemption features.
"WG&As management believes that the conversion of the common shares into redeemable preferred shares will give the stockholders more value for their shares since it provides liquidity for their investments," Valdez said.
Meanwhile, Pacemco Holdings corporate secretary Anna Melissa Lichaytoo said the companys board also discussed the possible quasi-reorganization in line with a similar recapitalization program to strengthen its balance sheet.
Pacemco, which undertook a corporate restructuring last year with the spin off and asset transfer of its cement manufacturing business into a separate entity, has about P700 million in outstanding liabilities.
Last month, the Metro Pacific-controlled shipping line Negros Navigation Co. Inc. proposed a four-pronged plan to wipe out about 73 percent of its existing deficit and enhance its attractiveness to potential partners or buyers.
Nenaco corporate information officer Virgenito Torcal said the firms board of directors had unanimously approved a change in its capital restructuring in order to reduce its retained deficit of approximately P3 billion at end-2000.