Trading on VMC shares resumes

MANILA, Philippines - The Securities and Exchange Commission has issued an order lifting the trading suspension on shares of Victorias Milling Co. Inc. (VMC) following the sugar miller’s implementation of corrective measures to clean its records.

However, the lifting of the trading suspension order is subject to VMC’s compliance with its outstanding obligations with the Philippine Stock Exchange.

Shares of the company were last traded on Oct. 8, 1997 at P0.29 each. The freeze on the sugar firm’s shares was effected after it sought debt relief and rehabilitation with the SEC and following findings of alleged fraudulent misrepresentation of material information.

“The said misrepresentation have been cleared, with the Office of the General Accountant having noted the adjustments made on the sugar inventory shortages and the company’s implementation of corrective measures to clean its records on transactions with affiliated companies,” the SEC said in its order.

The Negros Occidental-based sugar firm suffered tight liquidity problems in 1995 due to increased competition and a failed diversification into property and other non-sugar ventures.

In 2003, VMC saw a new investor in Tanduay Holdings Inc. of tobacco and airlines tycoon Lucio Tan, which injected P300 million in fresh capital to help revive the sugar miller’s operation under a rehabilitation plan.

To unlock more efficiency in its business, VMC plans to venture into railroad infrastructure and power.

The railroad project, which could be undertaken with other sugar millers, is intended to transport sugarcanes and passengers to help reduce transportation costs.