The SEC’s order of revocation, dated Aug. 26, 2002, was issued to Filsyn for its repeated inability to furnish the regulators periodic reports required for listed companies under the Securities Regulation Code (src).
"Records of this commission show that Filsyn Corp. violated src Rule 17 for its failure to submit on due dates its reportorial requirements despite notice and hearing," the SEC order noted.
Such requirements include the company’s quarterly and annual reports, balance sheet, profit and loss statement of cash flow, certified by an independent certified public accountant and a management discussion and analysis of results of operations.
The SEC said Filsyn can not trade its issued and outstanding securities nor issue new shares or other form of securities such as bonds or commercial papers while the commission order is in effect.
However, the SEC said the revocation does not exempt Filsyn from its reporting obligations under the src and its implementing rules and regulations of its total assets is at least P50 million and has at least 200 stockholders each holding at least 100 shares.
Filsyn’s "A" shares were last traded on March 29, 2000 at a price of P3 each while its "B" shares were selling at P10 since these were last transacted in 1993. The company has 206.246 million outstanding common shares listed at the exchange.
Filsyn, controlled by the group of former PSE director Patricio L. Lim, was formed in 1968 for the manufacture of polyester fiber and yarn but later ventured into the production of polyester terephthalate (PET) bottles which are supplied to the mineral water, softdrinks and condiment industries.
With the slump in the textile industry in the mid-90s, Filsyn’s operations have been severely affected, limiting the company to the disposal of old inventories, machineries and equipment as well as scrap metal and parts.
In late 2000, the company’s board directed management to study a proposal to change the firm’s principal activity to that of real estate development in view of its planned joint venture with Fil-Estate Properties and the Manila Banking Corp. but since then, no definite moves have taken place.