Nasipit Lumber files for debt relief

Nasipit Lumber Co. Inc., a publicly listed but inactive stock company, has filed for debt relief before the Regional Trial Court of Manila to enable it to pursue its rehabilitation program.

In a disclosure to the Philippine Stock Exchange, the lumber firm and its subsidiary, Philippine Wallboard Corp., said a petition for rehabilitation was filed last Aug.1 at the Manila RTC, including the "suspension of all actions and proceedings" against the two companies.

Nasipit, a dormant stock since 1998, has not resumed operations since then following serious cash flow problems. It was last traded in November 1998, closing at P45. Nasipit has total outstanding shares (A and B class) of 685,452 with a par value of P100 each.

The company, which was formed in 1946, produces a complete line of finished and semi-finished home building components (veneer and plywood) while Philippine Wallboard is directly responsible for the production and manufacture of low-cost but durable "lawanit" products.

It has a forest concession covering 98,000 hectares in Butuan City and several municipalities, including plant site host Nasipit, in Agusan del Norte.

"Due to several factors, these corporations encountered difficulties in meeting their obligations to their creditors. With the filing of the petition the shareholders and the investing public who hold shares of the company will be protected inasmuch as the danger for the facilities to be attached with no visible plan for its operations will be avoided," the PSE said.

In 1999, Nasipit posted net losses of P58 million which was substantially trimmed down from P109.8 million in 1998. However, the company still has total liabilities of P933.48 million which surpass its total assets worth P880.36 million.

As of end-1999, Nasipit was 51.29 percent owned by holding firm Martinez Leyba Inc. with Carlos Fernandez as chairman and president.