SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
MANILA, Philippines – Agribusiness firm Vitarich Corporation on Monday, July 7, said it is looking for strategic partners that would help grow its poultry and feeds businesses when the company exits corporate rehabilitation in September.
To enable the company to compete in the upcoming Association of Southeast Asian integration, Sarmiento said Vitarich is on the lookout for strategic investors that can strengthen its operations and provide newer technology for the company to operate better.
The company is now gearing up for growth as it exits rehabilitation, Vitarich Chief Operating Officer and Executive Vice President Rircardo Manuel Sarmiento said in a press briefing.
“We hope to be out of rehabilitation by September this year,” Sarmiento said.
Vitarich has significantly reduced its debt and increased its authorized capital stock 8 years ahead of its 15-year rehabilitation plan.
Vitarich said on July 4 that it would ask the court to let it exit rehabilitation ahead of the scheduled May 31, 2022 deadline.
The company is also working toward further reducing its total debt from a high of P3.2 billion ($73.61 million*) in 2007 when the company entered rehabilitation to P300 million ($6.90 million) by the time the rehab ends.
The remaining debt can be settled through another round of debt-to-equity conversion or assignment of receivables, Sarmiento said.
“We still have P300 million debt left and we are still talking to our creditors on how to settle the amount,” Sarmiento said.
Vitarich also increased its authorized capital stock to P3.5 billion ($80.41 million) from P500 million ($11.49 million).
The company also recently sold it non-core plants in Marilao, Bulacan for P610 million ($13.78 million) to repay remaining debts and to provide the company with additional working capital.
With the sale of the Marilao property, the company will engage toll manufacturing firms, which can be more efficient for feeds production.
Vitarich will introduce new food and feed products in the market, including Golden Dory line, to be launched in August.
With the Golden Dory, Sarmiento hopes that the product will be able to displace imported dory products in the market.
Vitarich previously converted P2.38 billion ($54.73 million) worth of debt into equity through Kormasinc Inc., a special purpose vehicle that is majority owned by Pedro Gonzalo Sereno, a family friend of the Sarmientos.
Kormasinc then partnered with global investment manager ADM Capital and Altus Capital Partners, to ensure the rehabilitation and turnaround of the Vitarich. – Rappler.com
*($1 = P43.53)
Add a comment
How does this make you feel?
There are no comments yet. Add your comment to start the conversation.