Nasipit Lumber now insolvent

Publicly-listed but dormant stock Nasipit Lumber Co. Inc. has been declared insolvent by the Regional Trial Court of Manila, paving the way for its eventual closure and delisting at the Philippine Stock Exchange.

In its order of adjudication last May 7, the court granted Nasipit’s request for insolvency and liquidation filed last February following six years of "serious financial difficulties."

One of the oldest logging and lumber processing firms in the country, Nasipit, suffered financial problems which led to its non-operation for the past six years.

The court also ordered the appointment of a liquidator who shall liquidate all the assets of the corporation and pay off all its obligations.

Nasipit, a dormant stock since 1998, has not resumed operations since then following serious cash flow problems. It was last traded in November 1998, closing at P45 and P150 for it’s A and B shares, respectively. Nasipit has total outstanding shares (A and B class) of 685, 452 with a par value of P100 each with an aggregate market capitalization of P44.018 million.

The company, which was formed in 1946 and listed in 1973, produces a complete line of finished and semi-finished home building components (veneer and plywood) while Philippine Wallboard is directly responsible for the production and manufacture of low-cost but durable "lawanit" products.

It has a forest concession covering 98,000 hectares in Butuan City and several municipalities, including plant site host Nasipit, in Agusan del Norte.

In 1999, Nasipit suffered net losses of P58 million which was substantially trimmed down from P109.8 million in 1998. However, the company still has total liabilities of P991.627 million although its total assets are only worth P758 million.

Nasipit is 51.29 percent owned by holding firm Martinez Leyba Inc. with Carlos Fernandez as chairman and president.