Posted on June 20, 2013 10:35:47 PM [ BusinessWorld Online ]
THE SECURITIES and Exchange Commission (SEC) has ordered the dissolution of six firms under Uniwide Group after regulators denied the firm’s bid for corporate rehabilitation, the company said in disclosure yesterday.
“The dissolution of all companies in the group, namely: Uniwide Sales, Inc.; Uniwide Holdings, Inc.; Naic Resources & Development Corp.; Uniwide Sales Realty and Resources Corp.; First Paragon Corp.; and Uniwide Sales Warehouse Club, Inc. is hereby ordered,” the decision of the corporate regulator, which was attached to the company’s disclosure to the stock exchange, read.
At the same time, SEC also denied the group’s bid for a corporate rehabilitation.
In the decision dated May 30, 2013, the SEC said it found several reasons leading to the firm’s denial of corporate restructuring.
“The special hearing panel observed that at the time of filing of the petition for rehabilitation on 25 June 1999, petitioner-appellants were solvent as their assets (P19.86 billion) exceeded liabilities (P11.10 billion), but they had difficulty in meeting their obligations,” the 28-page en banc decision read.
Petitioner-appellants “have very high debt-to-asset ratio,” it added. A debt ratio greater than 1.0 means the company has negative net worth and is technically bankrupt.
“The special hearing panel also saw the enormous capital deficit of the petitioner-appellants,” the SEC added.
Uniwide was established by the Gow family as a textile bargain house in January 1975.
It used to be one of the leading retail companies in the Philippines.
Shares of Uniwide Holdings were last traded on Jan. 18, 2010. It closed then at P0.135 apiece before trading of its shares was suspended. -- CHCV