In an en banc decision last week, the SEC noted that the agribusiness firm’s offer to buy a 100,000 sqm. lot owned by Rubberworld for P974 million, to be paid in three installments, is higher than the P900-million offer made by taipan Luio Tan in 1998. Gigoso Farms bested 220 other interested buyers since Rubberworld closed shop in 1996.
The SEC said the offer to buy is timely since the property is in danger of being foreclosed by the Philippine National Bank, leaving the SEC-appointed liquidator no funds to settle or pay the outstanding obligations with the government in the form of taxes, labor claims, unsecured creditors, trade suppliers and other creditors.
Along with the buy-out offer, there are also ongoing negotiations for the reduction of the company’s indebtedness with its existing creditors, the SEC said.
Based on the purchase offer, Gigoso will pay P9,500 per sqm. including two lots owned by third persons. A 50-percent downpayment will be made upon signing the deed of sale and submission of the requisite documents by the liquidator/seller.
A 25-percent second payment will be made on condition that the debris on the Rubberworld compound will be removed and that the premises are cleared of squatters and blockades.
The balance of 25 percent will be paid after the liquidator has turned over the premises to the guards of Gigoso; the list of union members of the former employees of Rubberworld has been submitted to the buyer; and the deed of absolute sale has been signed.