AGPI plans quasi-reorg to wipe out capital deficiency

AGP Industrial Corp. will embark on a quasi-reorganization program aimed at wiping out its capital deficiency, the company told the Philippine Stock Exchange.

Under the plan, AGPI will raise its authorized capital stock and reduce the par value of its shares. The company will also ask its shareholders for a written waiver of their pre-emptive rights.

AGPI said a memorandum of agreement is expected to be signed between the company and its new investors. There will also be a project study on the company’s future operations.

The plan likewise involves the elimination of the company liability to Trans-Philippines Investment Corp. by applying its investment in the shares of stock of Atlantic Gulf & Pacific Co. of Manila Inc. against this liability. This will contribute in easing the capital deficiency, AGPI said.

AGPI said the plan will take approximately 60 to 90 days to complete starting from the date of signing of the memorandum of agreement.

Incorporated in 1970, AGPI is an investment and management company organized for the purpose of acquiring the controlling stock of AG&P, the leading construction firm in the country. It is the oldest and among the largest diversified engineering and general construction firms in the Philippines.

The company’s primary activity is to engage in industrial and infrastructure projects both locally and abroad, particularly in the Middle East.

AGPI went on to diversify its operations in 1987 when it ventured into the manufacture and sale of foundation garments.