Phoenix Petroleum finalizing liability management exercise

MANILA, Philippines — Phoenix Petroleum Philippines Inc. of Davao-based businessman Dennis Uy is finalizing a liability management exercise (LME) to implement financial recovery.

Phoenix Petroleum said the LME includes engaging with a financial advisor to help shore up working capital and allow the company to increase inventory and generate the sales its network is capable of.

“As we have mentioned, the company’s focus is to prioritize operations in order to fulfill our obligations,” Phoenix said in a disclosure to the Philippine Stock Exchange.

Phoenix said the immediate task of ensuring operations is consistent with the company’s plan to settle its obligations and reduce its debt.

The company in December last year postponed the planned pay out of cash dividends to holders of its Series 4 (PNX4) preferred shares to preserve resources.

Phoenix previously told the local bourse that the earlier approved declaration of dividends of PNX4 preferred shares for the fourth quarter of 2022 was deferred upon recommendation by the management and as approved by its board.

The deferral is part of the company’s strategy “to preserve resources to improve operations, and ensure the long-term sustainability of the business.”

Phoenix said that it intends to settle the pending dividends in due time as the company is working, together with its parent firm, to ensure these would be met within this month or by next month.

“The company continues to coordinate with the arrangers for updates and we assure you that management places utmost importance on its obligations, including the settlement of dividends declared to PNX4 that are due,” it said.

Phoenix, in early November, approved the declaration of cash dividends of P18.92 per outstanding PNX4 preferred share from its unrestricted retained earnings for 2021.

The dividends were initially payable on Nov. 22, 2022 to its stockholders of record of Nov. 21, 2022.