The Securities and Exchange Commission (SEC) has approved the request of Consolidated Mines Inc. (CMI) to extend the term of the rehabilitation receiver by six months from January 2000 to June 30, 2000 to enable the company to come up with a more comprehensive rehabilitation plan aimed at reviving the firm.
The SEC said its approval was based on the fact that the majority of the members of the rehabilitation receiver are creditors of CMI themselves, and would be able to recover their losses on a long term basis.
In its motion for extension with the SEC, CMI said the previous summary report showed the same general condition and economic status which CMI is being developed for rehabilitation.
It said the company is faced by a depressed market made worse by a growing resistance from groups concerned with the environment.
Thus, the receiver felt that under these conditions, it would be difficult to implement a rehabilitation plan and still expect a recovery within the timetable. CMI, thus wanted to undertake its recovery under a more favorable climate.
CMI operates in the province of Marinduque where in 1996, the tailing disposal system of Marcopper Mining failed and caused a nationwide protest due to the pollution of Boac River-- a major artery and source of livelihood in the province.
CMI said that until today, the situation is still negative especially with the "cleaning up" of Boac River still incomplete and full of controversy.
CMI added that the economic and social conditions have not changed much during that second half of 1999 and the gloomy outlook is expected to continue this year. --