Vitarich completes 15-year corporate rehab, seeks court approval

MANILA, July 4 (PNA) — Locally listed feeds maker Vitarich Corporation has completed its 15-year corporate rehabilitation proceedings which started in 2007 and now seeks for court’s approval for early rehabilitation exit.

In a disclosure to the Philippine Stock Exchange (PSE) Friday, Vitarich said its corporate rehabilitation has been “successfully completed” and will ask the Rehabilitation Court to allow the company for early exit from the rehabilitation.

“Only a few companies, if not none, have successfully hurdled rehabilitation proceedings, and Vitarich Corporation is fortunate to be one of the few,” the company said.

In 2007, the Regional Trial Court of Bulacan Branch 7 which sits as the Rehabilitation Court has approved the 15-year rehabilitation program of the feeds producer.

By September 2013, Vitarich’s Board of Directors has resolved the conversion into equity of its debt which reached to P2.38 billion as a financial tool for corporate rehabilitation.

October of the same year, the Securities and Exchange Commission (SEC) cleared the company to convert its debt to equity and to increase its authorized capital stock from P500 million to P3.5 billion.

“After the approval of the debt to equity conversion, the debt of Vitarich Corporation had been substantially reduced,” the firm stated.

“Vitarich Corporation is now ready to be competitive again and thereby compete in the market without the protective mantle of a stay order,” it noted.

The company added that it has disposed several non-core assets to increase operating capital and pay off its remaining debt.

In the same disclosure to the local bourse, Vitarich mentioned that its Board of Directors has approved to sell its land in Abangan Sur, Marilao, Bulacan to 8990 Housing Development Corporation. (PNA)