VICTORIAS Milling Co. Inc (VMC) said Friday it proposed to modify a rehabilitation plan it submited to the Securities and Exchange Commission (SEC) in April by including a compromise payment scheme for some bank loans.
In a disclosure to the Philippine Stock Exchange (PSE), VMC said that its subsidiary North Negros Marketing Company Inc (Nonemarco) used refined sugar delivery orders (RSDO) and refined sugar quedans (RSQ) issued by VMC to avail of loans from several banks, which remain outstanding.
The banks with outstanding loans are: Dao Heng Bank Inc (DHB, now BDO Unibank Inc), Land Bank of the Philippines (LBP), Bank of the Philippine Islands (BPI) and Philippine National Bank (PNB).
VMC said that while it asserts it did not benefit from the loans, it is willing to repay the banks over a period of 10 years, to avoid future and protracted litigation.
The compromise amounts are as follows: P34,136,587 for DHB; P204,907,006.50 for LBP; P55,250,000 for BPI; and P10,629,850 for PNB.
“Interests, penalty charges, legal fees, and expenses claimed against VMC in connection with the RSDOs and RSQs are deemed waived and condoned by the RSDO and RSQ claimants,” VMC quoted the order it received and transmitted to the company by its rehabilitation counsel.
“The compromise amount or any remaining balance thereof shall not be subject to any interests or changes during the 10-year payment period,” the order stated.
“Any provisions in the rehabilitation plans of VMC, particularly, the Updated Rehabilitation Plan dated Sept. 25,1998, First Addendum to the Rehabilitation Plan as of Feb. 5, 1999, Second Amendment to the Rehabilitation Plan dated July 22, 1999, Alternative Rehabilitation Plan, and the Debt Restructuring Agreement dated April 29, 2002, inconsistent herewith are hereby repealed or modified accordingly,” according to the order.
Meanwhile, VMC was also directed to determine the status of RSDO claims by Asianbank and submit a plan to settle it if it determines the existence of an outstanding debt; validate other pending claims against the company particularly labor cases in other courts or tribunals; discuss with other claimants and creditors contingent claims and labor claims pending before courts or other tribunals; and submit a separate plan for the settlement of the claims for approval. — Reicelene Joy N. Ignacio
