GEI corporate information officer Arsenio Cabrera Jr. said company chairman Nora Bitong is prepared to recommend to the board of directors the scrapping of the quasi-reorganization.
"GEI instead will focus on its old economy assets and drop its earlier plans to convert GEI into an IT company," Cabrera said.
In January last year, GEI indicated it would transform itself into an IT company and realign its assets and liabilities to a new, wholly-owned holding entity.
In mid-1999, the company’s directors and stockholders approved the restructuring of GEI by shifting its investments in real property and health care products to solely IT-related business ventures.
GEI had its eyes set on joining the ranks of other listed companies that have completely transformed themselves into IT or Internet-related businesses over the past year. The list includes South Seas Resources (now PhilWeb.com), Vantage Equities (now iVantage Corp.) Island Mining (now Island Info and Tech), Acoje Mining (now Ajo.net), and Petrofields Exploration (now iPeople).
"The assets and liabilities of GEI have not been spin off to another entity. All the assets of GEI are registered in its own name and the liabilities of GEI shall remain as such. There had been no filings with the SEC to implement the decrease in authorized capital," Cabrera said.
Based on the original plan, the transfer would involve the activation of Global Airport Container Yard (GACY), a non-operating 100-percent subsidiary as the corporate vehicle to receive the net assets of the company.
The corporate name of GACY will eventually be amended to GEI Assets Corp. and its primary purpose changed from warehousing, packing and crating of goods to a holding company.
GEI’s other subsidiaries are Global Airport Business Park, Global Airport Facilities, Global Airport Storage Co., and Global Business Park Ventures – all based in Parañaque; manufacturing firm Adamson & Adamson and property firms Mt. Ridge and Clark’s Sacobia Hills and Country Club Inc.
GEI is developing the 10-hectare business park along Ninoy Aquino Ave. in Parañaque at a cost of P500 million to P1 billion to support and cater to businesses within the main airport hub.
Last week, the share-swap deal with IT school chain STI and its sister company SSI – the planned corporate vehicles to jumpstart GEI’s IT ventures –was aborted due to the latter’s inability to meet its financial commitments and aggravated by the internal conflict and squabbles by and among the principal shareholders of STI and SSI in the management of the business. – Conrado Diaz Jr.