SEC approves Uniwide petition

The Securities and Exchange Commission (SEC) approved the petition of debt-saddled Uniwide Group of Companies to extend its suspension of debt payments to June 6 this year.

SEC hearing officers Enrique L. Flores Jr. and Manolito S. Soller in a signed order said all claims, actions, and proceedings against the company and its subsidiaries will remain suspended for the next 60 days or from April 7, when its debt reprieve expires.

Along with the debt reprieve, Uniwide has also asked the SEC to accelerate its approval of the submitted amended rehabilitation plan since a good number of its creditors have already given their go- ahead with the revised recovery scheme.

With the approval of the suspension of debt obligations of Uniwide, the company can focus on negotiating with interested investors. Moreover, the approval of the revised recovery plan will enable Uniwide to implement activities which can only be done after it is sanctioned by the SEC.

Uniwide claimed earlier it has receive comments from 39 secured and unsecured creditors out of about 1,200 creditors. Among the secured creditors, three banks whose total exposure to the Uniwide Group amounts to P1.531 billion filed their opposition to the amended rehabilitation plan.

These oppositors comprise 22 percent of the total value of the obligations to secured creditors. However, the receiver continues to negotiate with these banks and "it most likely they will eventually agree to the amended rehab plan with the possible exception of one bank with a credit which comprises 10 percent of the total value held by secured creditors," Monico Jacob, chairman of the interim receive committee of Uniwide said.

On the other hand, unsecured creditors with total exposure of P68.815 million opposed the rehab plan mainly because they object to the 50 percent discount held on their credit.

Jacob said the SEC's approval is "absolutely necessary" because of the need to close the transaction with Casino Guichard-Perrachon, the French retail giant which will pay P3.57 billion in cash for 89.2 percent of Uniwide, subsidiary, Uniwide Sales and Warehouse Club Inc. (USWCI).

Uniwide is badly in need of new money as it continues its losing streak, posting a bigger net loss of P2.665 billion in 1999 compared to P667.2 million in the previous year.