By Neil Jerome C. Morales (The Philippine Star) | Updated July 4, 2013 - 12:00am
MANILA, Philippines - Former textile manufacturer Filsyn Corp. said it has entered into talks with property firms for the development of its lots in Laguna and Cavite.
The development or sale of idle landbank is in line with Filsyn’s efforts to turn around its negative stockholders equity, it said.
“Filsyn has ongoing discussions and negotiations with real estate companies for potential joint venture arrangement to develop the 30-hectare property located in Sta. Rosa, Laguna,” the firm said in a disclosure to the Philippine Stock Exchange (PSE).
Filsyn is also conducting negotiations with interested parties for the sale of a property in Gen. Mariano Alvarez in Cavite, it added.
As of end-March, the company had a capital deficiency of P993.18 million, slightly lower than the P994.01 million a year ago.
In terms of existing debts, the listed firm has yet to transfer to creditors its Sta. Rosa property pending tax implications and restrictions on land ownership, Filsyn said.
In November 2010, trustee Chinatrust informed Filsyn that creditors of the mortgage trust indenture have accepted Filsyn’s proposal to fully settle a P1.2-billion debt through the Sta. Rosa property as dacion.
The PSE suspended the trading of Filsyn shares in 2002 following the revocation by the Securities and Exchange Commission (SEC) of its permit to sell securities.
However, Filsyn said despite the payment of its obligations to the SEC, corporate regulators have yet to lift the revocation order.
Filsyn, controlled by the group of former PSE director Patricio L. Lim, was formed in 1968 for the manufacture of polyester fiber and yarn but later ventured into the production of polyester terephthalate bottles which are supplied to the mineral water, softdrinks and condiment industries.
With the slump in the textile industry in the mid-90s, Filsyn’s operations have been severely affected, limiting the company to the disposal of old inventories, machineries and equipment as well as scrap metal and parts.
In late 2000, the company’s board directed management to study a proposal to change the firm’s principal activity to that of real estate development in view of its planned joint venture with Fil-Estate Properties and the Manila Banking Corp. but since then, no definite moves have taken place.