Nenaco to appeal penalty for SRC violation

Negros Navigation Co. Inc. (Nenaco) will appeal the P75,000 penalty imposed on it by the Securities and Exchange Commission (SEC).

"We intend to file a request for reconsideration of the assessment by the SEC," Nenaco said in a disclosure to the Philippine Stock Exchange.

Nenaco was fined for its failure to comply with Sec. 17 of the Securities Regulation Code, which requires all listed corporations to disclose any unknown trend, event or uncertainty that may adversely affect their financial condition.

The SEC found no merit in Nenaco’s explanation for its non-compliance with the disclosure rules.

In its reply to the show-cause letter issued by the SEC, Nenaco said it had nothing to report at that time because its finances showed positive operating results, sufficient to support operations as shown in its statement of cashflows for 2002 and 2001.

In a separate disclosure, Nenaco’s parent firm Metro Pacific Corp. said it is exploring a number of options to bring Nenaco, its financially-troubled shipping unit, back on its feet again.

"At this time the vehicle or structure of such a transaction has yet to be decided and presented to the Metro Pacific board of directors for approval, " MPC said.

MPC said it has initiated a comprehensive internal audit and review of Nenaco’s business and operations to deal with areas with deficiencies.

The Manila Regional Trial Court earlier granted Nenaco’s petition for an immediate suspension of debt payments amounting to P2.5 billion, which is the first step towards the implementation of the shipping firm’s rehabilitation program.

Nenaco was forced to seek debt reprieve from the court to shield it from any foreclosure proceedings to be initiated by its creditors and to allow it to continue its business operations.

The Cebu Regional Trial Court earlier issued a writ of preliminary attachment against its properties in response to the petition filed by one of its creditors, Japan’s Tsuneishi Heavy Industries Inc. to which it owes over P100 million.

Nenaco said the stay order issued by the court ensures the sanctity of its assets while its rehabilitation program is being considered by the court.

The company said it was close to signing a deal with prospective investors willing to infuse fresh capital when Tsuneishi initiated its debt claims.