MANILA, Philippines - Minority shareholders of Alliance Select Foods International have asked the Court of Appeals to reverse the decision of the Pasig Regional Trial Court junking their petition to stop the tuna canner’s stock rights offering.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Alliance Select said a group of minority shareholders has elevated its case to the Appellate Court.
In their appeal, the minority bloc sought the issuance of an order stopping Alliance Select from implementing the Oct. 2, 2015 record date of the firm’s annual stockholders meeting, slated on Nov. 1.
Minority shareholders claimed the company’s directors and officers are violating basic stockholder rights by requiring shareholders to subscribe to the P1 billion capital raising exercise before holding the stockholders meeting earlier scheduled on June 15.
The minority bloc is composed of Harvest All Investment Ltd., Victory Fund Ltd., Bondeast Private Ltd., Albert Hong Hin Kay and Hedy Yap Chua.
In junking the minority bloc’s petition, the Pasig RTC noted the issuance of a temporary restraining order was unwarranted because the minority investors were granted the right to subscribe to the stock rights offering.
The board of Alliance Select, however, said the company proceeded with the stock rights offering last Aug 17 which lasted until Aug. 26.
“Should the Court of Appeals issue a TRO and/or writ of preliminary mandatory injunction as prayed for, the record date of the annual stockholders’ meeting will be affected,” Alliance Select said.
The complainants said the tuna company has been struggling financially in the last two years.
Last year, Alliance Select incurred an all-time high net loss of $17 million, up from the $2.92 million loss incurred the previous year.
The company currently has a total of $27.85 million in short-term loans from local banks, foreign banks, and investment banks that are set to mature this year.
Long-term loans, on the other hand, amounted to $4.64 million with years of maturity ranging from 2016 to 2024.