All Asia Capital seeks advisor for rehab plan

All Asia and Trust Corp. (AACTC) is looking for a financial advisor for its rehabilitation plan.

An AACTC source said they plan to tap a locally-based financial and consultancy firm such as SGV & Co.

"The company needs a third party financial advisor to offset the impasse between All Asia Capital and the International Finance Corp. The present shareholders and management of All Asia Capital want to rehabilitate the company through additional capital while the IFC does not want an infusion of capital as it would dilute its position in the company," the same source who requested anonymity said.

Recently, All Asia Capital sought a suspension of its debt payments with the Regional Trial Court of Makati. It has debts amounting to over $30-million, with the Land Bank of the Philippines (LBP) having reportedly extended at least $16 million while the IFC accounted for at least $17 million.

All Asia Capital insists that the only way the investment house can operate fully is to rehabilitate through capital infusion, which is being opposed by IFC as its seven-percent holdings would be diluted. The World Bank investment arm pointed out that there is a anti-dilution clause in its contract with All Asia Capital.

"It is logical to simply amend that clause but the IFC would not have it. We have no choice but to get a third party," officials said.

Meanwhile, the same sources, said All Asia Capital wants to dispose of enter into a joint venture agreement for its subsidiary All Asia Plans, its pre-need company. They are also looking for a joint venture partner for All Asia Life Assurance Corp.

"In the case of All Asia Life, AACTC wants to maintain a portion of it but it can not maintain All Asia Plans due to the huge trust fund requirements," they said.