PSE halts trading in shares of Nenaco

The Philippine Stock Exchange (PSE) indefinitely suspended yesterday trade in shares of Negros Navigation Co. (Nenaco) following the shipping firm’s filing of a petition for suspension of debt payments and corporate rehabilitation with the courts.

Nenaco, which is 97 percent owned by property firm Metro Pacific Corp., the local flagship of Hong Kong’s First Pacific Co. Ltd., sought reprieve from the Manila Regional Trial Court on the payment of P2.5 billion in debts to creditors.

The company said a court-approved rehabilitation program will allow it to address debts and trade payables without the unduly interruption of its operations.

"Please be informed that the exchange shall issue an indefinite suspension on the company’s securities effective March 30 due to its filing for corporate rehabilitation program with prayer for immediate suspension of debt payments," the PSE said in a memo to traders

Nenaco was last traded on March 23 and closed at 37 centavos.

The shipping firm owes ship repair and drydocking provider Tsuneishi Heavy Industries Inc. (THI) over P100 million. THI is a joint venture between the Aboitiz Group and the Tsuneishi Corp. of Japan.

Profits of Nenaco slid by 18.2 percent last year to P84 million from P102.7 million in 2002 due to higher operating expenses and reduced revenues in the passage and freight business.

Nenaco is presently engaged in discussions with a number of parties for possible equity investment and strategic business partnerships.