Vitarich recovers from debt, increases stock ahead of rehab plan

Rappler.com

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Vitarich recovers from debt, increases stock ahead of rehab plan
The poultry and feeds producer now petitions to exit the court-assisted rehabilitation plan 8 years early of the May 31, 2022 deadline

MANILA, Philippines – Poultry and feeds producer Vitarich Corporation has significantly reduced its debt and increased its authorized capital stock 8 years ahead of its 15-year rehabilitation plan.

As such, Vitarich said on Friday, July 4, that it would ask the court to let them exit the rehabilitation plan ahead of the scheduled end on May 31, 2022.

The company has converted most of its debts into equity, amounting to P2.37 billion ($54.51 million)*, which helped in reducing the company’s debts to P800 million ($18.40 million) from a high of P3.26 billion ($74.99 million).

Vitarich also increased its authorized capital stock to P3.5 billion ($80.42 million) from P500 million ($11.50 million).

In September 2006, Vitarich filed for rehabilitation after being severely hit during the Asian financial crisis in the 1990’s, when cost of doing business, including interest and exchange rates, soared to record highs. It used to employ a thousand but was forced to reduce it to 400 to weather the crisis.

The company had difficulties in paying off bank loans and other liabilities, which ballooned to P3.26 billion ($74.99 million), from an outstanding loan of P2.6 billion ($59.80 million).

In May 2007, The Bulacan Regional Trial Court approved the 15-year rehabilitation of Vitarich.

In a disclosure to the stock exchange, Vitarich board authorized Ricardo Sarmiento, the company’s executive vice president and chief operating officer, said then company was set to petition the rehabilitation court to declare that the company’s rehabilitation has been successfully completed and allow them an early exit.

Back in the game

The agribusiness company said it is now ready to compete again in the market without the protective mantle of a stay order.

Because of lack of working capital, Vitarich is currently producing 120,000 bags per month of feeds from its facilities in Bulacan, Iloilo, and Davao, compared to its rated capacity of 300,000 bags a month. The company is also producing 1 million chicks per month.

Founded by Sarmiento brothers Feliciano, Lorenzo, and Pablo, Vitarich is among the oldest feeds producers in the Philippines. It primarily engages in the formulation, production, storage, and marketing of various animals and aqua feeds produced in various forms.

It is headquartered in McArthur Highway, Abangan Sur, Marilao, Bulacan. – Rappler.com

 

 

 

($1 = P43.47)

 

Image from Wiki Commons

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