PHILAB Holdings Corp. is divesting from two subsidiaries including Philab Industries, Inc. (PII), amid an ongoing garnishment case filed against the latter.
In a disclosure to the stock exchange on Wednesday, Philab Holdings said its executive committee has decided to unload its investments in PII and LABiT Pte. Ltd.
Philab Holdings owns a 93.48% interest in PII, which has core investments in health care and education through the supply of life science equipment.
The listed firm said proceeds of the sale will be used to settle PII’s liabilities.
PII, alongside its Philab Holdings President and Chief Executive Officer Hector Thomas A. Navasero, is currently facing a civil case filed by Unicapital, Inc.
“This civil case arose from the bridge loan facility agreement dated Sept. 25, 2016 acquired by PII amounting to P100 million used to fund projects of PII with the Department of Education for the supply of teaching kits for 40,000 public schools,” Philab Holdings said in an earlier disclosure.
The notice was made upon the Bank of the Philippine Islands for the collection of “goods, effects, bank deposits, stocks, interest in stock and shares and any other properties” under PII’s control and possession.
Philab Holdings earlier said that the issuance of the order will not have a material impact on its operations.
“The petition and the issuance of the order will not have a material impact on the Company’s operations. Philab Holdings Corporation is independent from its subsidiaries having an operations and business of its own,” the company said.
Philab Holdings reported a a net loss attributable to the parent of P107.85 million in the first nine months of 2017 against an attributable loss of P860,006 in the same period a year ago. Gross revenues, meanwhile, stood at P155.15 million during the same nine-month period.
The company has not filed its annual report for 2018.
Incorporated in 2000, Philab Holdings is listed on the small, medium, and emerging board of the Philippine Stock Exchange. — Arra B. Francia
