Nasipit Lumber to close down

Nasipit Lumber Co. Inc., one of the oldest logging and lumber processing firms in the country, will be delisting its shares at the Philippine Stock Exchange (PSE) as it prepares to close shop following six years of "serious financial difficulties."

The company informed the PSE that during its special stockholders' meeting held last week, the shareholders voted to apply for insolvency and liquidation with the courts and to seek the appointment of a liquidator who shall liquidate all the assets of the corporation and pay off all its obligations.

It said the decision was in view of the company’s serious financial predicament which has led to its non-operation for the past six years and the difficulty of a recovery, considering the current economic climate, and in order to meet and settle all its obligations.

Nasipit said with the projected liquidation it has decided to revoke its earlier decision to file for receivership and rehabilitation with the Regional Trial Court in Manila.

In August last year, the lumber firm and its subsidiary, Philippine Wallboard Corp., filed a petition for rehabilitation, 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 and listed in 1973, 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 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.

In 1999, Nasipit Lumber incurred a net loss of P58 million which was substantially trimmed down from P109.8 million in 1998. However, the company still has total liabilities of P991.627 million although its total assets are only worth P758 million.

Nasipit is 51.29 percent owned by holding firm Martinez Leyba Inc. with Carlos Fernandez as chairman and president.