Bourse freezes trading of 2 firms

The Philippine Stock Exchange (PSE) suspended yesterday trading of two listed companies after both failed to comply with reportorial requirement within the deadline set by the bourse.

At the same time, the PSE has extended until the end of this month the deadline for five other companies which were warned of the same sanction if they fail to comply.

Suspended for its failure to submit 200 copies of its annual report for the fiscal year ended Dec. 31, 2000 and pay the basic and daily fines was Wellex Industries Inc., the flagship firm of plastics king William Gatchalian.

Sinophil Corp., a third liner oil stock, was also suspended for not filing its audited financial statement for the same fiscal year and for failure to pay the basic and daily fines.

The PSE said trading in both companies will remain suspended until they comply with the requirement.

Meanwhile, five companies requested for additional time to submit the reportorial requirements. They are Philcomsat Holdings Corp., Universal Rightfield Property Holdings Inc., Philippine National Construction Corp., Fil-Estate Corp. and Unioil Resources & Holding Co. Inc.

The PSE said should the companies fail to submit the requirement by July 31, the Exchange will implement a trading suspension on their shares the following day, Aug 1.

Of the nine listed firms earlier warned of trading suspension by the PSE for non-complying with its rules, only two have beaten the July 16 deadline —— RFM Corp. and Benguet Corp.

RFM, in particular, said the delay in the submission of the audited financial statement was mainly due to the requirement of its external auditor SGV & Co. to include in the audit report the outcome of the impending convertible bond issue which had a May 30, 2001 due date for redemption payment.

"The external auditors had to be clear on the financial impact of the bond issue, specifically the magnitude of foreign exchange loss and put premium accretion that will have to be recognized in year 2000 and on how the company will address the bond obligations, including the repayment plan being worked out with the bondholders," RFM chief financial officer Meldin Al Roy said.

RFM said its consolidated sales went up nine percent to P17.3 billion and a positive operating income of P550 million in 2000. However, it still ended with a net loss of P520 million after absorbing about P1 billion in foreign exchange losses from the convertible bonds and higher interest rates.

Benguet Corp. also reported a net loss for last year of P400 million due to hifher operating costs and expenses amid lower revenues from its mining operations.