MANILA, Philippines - Listed Sugar miller Victorias Milling Company Inc.has reached a settlement with its creditors to convert part of its existing debts to equity.
In a regulatory filing yesterday, the company announced that its board of directors approved the conversion of P70.05 million worth of convertible notes into equity which is equivalent to 70,049, 966 shares pursuant to the debt restructuring agreement with its creditors.
Creditors covered by the restructuring agreement include: Advent Capital & Finance Corp. (514,047 shares), Asset Pool (SPV-AMC), Inc. (706,138 shares), Narra Investment Corp. (19,344,551 shares), Central Bancorporation (337,743 shares), Narra Investment Corp. (40,083,757 shares), East Asia Capital (1,262,088 shares), First E-Bank/PDIC (514,047 shares), Philippine Commercial Cap., Inc. (1,584,016 shares) Sullasses Holdings, Inc.(- 5,621,087 shares).
In April, the company approved to pre-pay part of its restructured loans. Its board approved the pre-payment of its creditors on May 31, 2013 amounting to P709.4 million and $3.24 million in accordance with its debt restructuring agreement.
The company has been paring down its debt to strengthen its balance sheet as it ugrades its production facilities in preparation for heightened competition when sugar tariffs across the Association of Southeast Asian Nations is reduced to between five percent to zero by 2015.
VMC is engaged in integrated raw and refined sugar manufacturing. It’s plant facilities are located in Victorias City, Negros Occidental.
It has subsidiaries engaged in fish canning, real estate, sugar sacks manufacturing and packaging, and golf course and restaurant operations
The operating subsidiaries of VMC include Victorias Foods Corporation, Victorias Agricultural Land Corporation, Canetown Development Corporation, Victorias Golf and Country Club, Inc., Victorias Quality Packaging Company, Inc., and Victorias Industrial Gases Corporation.
It began to encounter financial difficulties in the mid 1990s due to failure to contain rising overhead costs against falling domestic sugar prices.
It was also unable to compete with new and expanded sugar mills and refineries.