Restructuring to wipe out NextStage deficit

Publicly-listed information and telecommunications technology (ICT) firm NextStage Inc. expects to fully wipe out its deficit by the end of the year following the completion of its quasi-reorganization, the company said in a disclosure to the Philippine Stock Exchange.

As of end-2002, the company has a capital deficit of P184.15 million.

The restructuring program will be implemented by way of a decrease in the firm’s capital stock from P500 million to P100 million, and the reduction of the par value per share to P0.20 without increasing the existing number of shares.

The company will then amend the new par value from P0.20 to P1, resulting in the reduction of the total number of shares.

NextStage was incorporated in 1964 as Pacific Cement Co. Inc. to engage in the manufacture and trading of cement and related products. It started commercial operations in 1967 and was the sole cement producer in Northeastern Mindanao.

However, due to financial constraints, the company decided to change its primary purpose from cement manufacturing to a holding company in June 2000. Thereafter, the company changed its corporate name to Pacemco Holdings, Inc.

In Dec. 2000, the company acquired 100 percent of the capital stock of NextStage Inc., a company established by reputable and pioneer industry leaders to take advantage of the opportunities in the rapidly growing ICT sector and the emerging e-economy.

By June 2001, the Securities and Exchange Commission (SEC) approved the merger of Pacemco Holdings Inc. and its subsidiary, NextStage Inc. with Pacemco as the surviving corporation. Subsequently, the SEC also approved the change in name of Pacemco to NextStage Inc. This now positions the company to the second phase of its transformation.