The so-called stay order, which prohibits the companies from paying the principal and interest on their outstanding debts, is expected to pave the way for an orderly restructuring of the Group’s debts.
Ramcar president Roberto V. Garcia said the order "allows us to continue normal operations and service our customers both in the domestic and export markets."
Ramcar exports more than 40 percent of its output to the US, Australia and ASEAN markets.
The proposed financial restructuring plan of Ramcar calls for the immediate settlement of P6.205 billion in unsecured loans and the restructuring of secured loans totalling P1.571 billion. The restructuring plan also calls for the completion of the P1.365-billion modernization and expansion program of the Group.
Of the P6.205-billion debt settlement, 95 percent or P5.9 billion will be via assets to be contributed by Ramcar shareholders.
Ramcar has outstanding debts with 19 creditor banks including the Bank of the Philippine Islands (BPI), the Land Bank of the Philippines, the Rizal Commercial Banking Corp. (RCBC), Citibank Phils., the United Coconut Planters Bank (UCPB), Equitable PCI Bank, and the Union Bank of the Philippines.
Ramcar reportedly has a P1-billion loan with the LBP and roughly P500 million with UCPB and RCBC.
Ramcar dominates the local auto battery market with an estimated share of 65 percent. From its major production facilities in the Philippines, it has the capacity to produce 480,000 batteries per month.
The Group also has interests in the food business and other sectors.
In the food business, the group holds the Kentucky Fried Chicken and Dunkin Donuts franchise in the Philippines. The Group also has investments in Philippine Airlines, the Seven-Eleven franchise, and the Union Bank.