Pryce Corp hikes capital to P4-B

Listed firm Pryce Corp. has increased its authorized capital stock from P400 million to P4 billion to facilitate the implementation of the court-approved corporate rehabilitation plan of its subsidiary Pryce Gases Inc. (PGI).

Based on the rehab plan submitted to the Makati Regional Trial Court, Pryce shall offer its real estate assets as partial payment for the obligations of PGI to its creditors.

The plan was filed by the International Finance Corp., the private sector financing arm of the World Bank and the Netherlands Development Finance Co., both creditors of PGI.

As of April 30, 2002, PGI is estimated to have owed its banks and financial creditors a total amount of P2.671 billion or approximately $53.5 million, of which about 44 percent was due to IFC and NDFC.

PGI has been in default on its interest payments to IFC and NDFC since Dec. 2000 and on its principal payments since Dec. 2001.

The company is engaged in the distribution of liquefied petroleum gas (LPG) and industrial gases, primarily in the Visayas and Mindanao regions.

The IFC and the NDFC, both developmental finance institutions, said they are well positioned to play a constructive role in protecting the interests of all stakeholders involved: lenders, employees, customers, investors, and suppliers – as well as safeguarding the social, environmental, and economic welfare of the communities affected by PGI’s business operations.

The creditors believe that PGI’s LPG operations can be restored to economic viability and that the rehabilitation plan would enable PGI to resume its role as a competitive player in the Philippines’ deregulated fossil fuel markets.