In a disclosed statement, RFM said the convertible bond fell due on May 30, 2001 with a total payable amount of $83 million, including the put premium.
At that time, RFM said it was able to work on a reduction of its obligation through bonds buy-back and refinancing arrangements that resulted in a reduction of the outstanding bond obligation to $56 million.
According to RFM, it allocated to bondholders the proceeds from the sale of its shares in subsidiaries Consumer Bank and Psi Technologies and its tuna brand which amounted to $38 million.
Using the proceeds from the recent sale of its beverage subisidiary, Cosmos Bottling Corp., the Concepcion-controlled company was able to fully setlte its $18 million balance.
"The situation was difficult and tough decisions had to be made," RFM president and chief operating officer Jose Concepcion III said. "We have always assured stockholders that the bonds will be fully settled."
"We had to find solutions amidst the difficult business environment," Concepcion added, refering to the sale of RFM’s cash cow, Cosmos Bottling. "We believe we have kept our word and not let our creditors down."
Last week, RFM declared a P2-billion cash dividend to all its shareholders. With currently estimated fully-diluted shares of 1.561 billion, espected dividend per share was approximately P1.28.
The consummation of the P14-billion sale of its softdrink subsidiary to the San Miguel group last Jan. 3, 2000 enhanced RFM’s liquidity position dramatically. – Des Ferriols