The Securities and Exchange Commission early this week approved the second amendment to Uniwide’s rehabilitation plan, which was filed in October 2001.
In its order, the SEC said: "After close scrutiny of the supplementary financial data, both historical and projected, and having the same evaluated by our securities financial specialists, the SEC hearing panel finds the same within reasonable limits to merit acceptance."
In justifying its order, the SEC hearing panel said the plan was feasible and it had the support of the majority of the creditors of the warehouse club operator.
Under the SEC rules of corporate recovery, no rehabilitation shall be approved by the Commission if opposed by a majority of any class of creditors.
The SEC noted that only 19.74 percent of secured creditors and only 7.98 percent of the unsecured creditors opposed the plan. "Hence, the required majority of any class of creditors to disapprove the plan is not met," the SEC hearing panel said.
In addition, the SEC hearing panel said Uniwide Sales Warehouse Club Inc. (USWCI) had improved its performance in spite of limited resources.
Based on financial reports submitted to the SEC, USWCI’s sales as of October last year amounted to P5.36 billion, which is 81 percent of the projected sales of P6.6 billion. The company expects to obtain additional sales of P1 billion in November and December.
The SEC also took into consideration the fact that Uniwide has been getting better credit terms from its suppliers. "While in 1999 to 2000, the company procures its supermarket and dry goods on a COD basis, from 2001 to the present, the company procures supermarket items on a seven to 15 days credit terms. While dry goods are taken on a 60-90 days credit terms," the SEC hearing panel said.
The withdrawal by French retail giant Casino-Guichard Perrachon of its plan to invest P3.57 billion in fresh capital into Uniwide prompted the filing by the discount retail chain of its amended rehabilitation plan.