Omico urged to pursue settlement

Manila, Philippines -  Omico Corp. minority stockholders yesterday expressed concern over the reported syndicated estafa complaint filed recently at the Mandaluyong City prosecutor’s office by Guevent Investments Development Corp. (GIDC) and Honeycomb Builders Inc. (HBI) against the publicly-listed firm.

Speaking for the group, minority stockholder Melchor Amado Jr. urged Omico members of the board to pursue an out-of-court settlement with GIDC and HBI “for the sake of the corporation and its stockholders instead of engaging in a protracted and expensive court litigation process”.

He said many minority stockholders like himself are worried about the adverse effect of the lawsuit on Omico shares being traded in the stock market.

Amado observed that the full implementation of a joint venture agreement — signed in 1995 by Omico, GIDC and HBI — got stalled because of Omico’s refusal to proceed with the construction of a mixed-use condominium project in Makati City.

 “We are afraid that Omico shares would further plummet because investors are now shying away as a result of the syndicated estafa charges filed against Omico members of the board,” he added.

In the 19-page complaint, GIDC and HBI accused of misappropriating P250 million which was supposed to be used solely for the construction of a mixed-use condominium building on a 4,949 square-meter lot owned by GIDC and HBI in Makati City.

According to the complainants, Omico’s alleged refusal to comply with the terms of the joint venture agreement caused GIDC and HBI damage and prejudice in the amount of P596,098,863.