MANILA, Philippines - The Securities and Exchange Commission (SEC) has junked East WestBank’s motion to convert its debt notes into equity in Victorias Milling Corp.
This was a reversal of SEC order dated March 19 which compelled VMC to convert 13 percent of the outstanding convertible notes held by EastWest Bank into VMC shares.
VMC, however, appealed its case to the Commission en banc.
“Wherefore, premises considered, the instant appeal is hereby granted. The special hearing panel’s order dated March 19, 2015, is hereby reversed and set aside,” the SEC said.
East West…Bank earlier offered to rehabilitate VMC, which was once the country’s largest sugar mill.
The group of taipan Lucio Tan owns at least 20 percent of the sugar firm.
VMC, one of the largest in the Southeast Asian region, incurred significant losses from operations in the 1990s. On July 4, 1997, the company filed an application with the SEC for suspension of payments to creditors as debts ballooned to up to P1.1 billion.