Rehab talks with creditors going on smoothly — Nenaco officials

Initial talks with its creditors over Negros Navigation Co. (Nenaco)’s petition for corporate rehabilitation plan earlier filed with the Manila Regional Trial court were proceeding beyond expectations, company officials revealed.

"Nearly all creditors with whom we have been in discussions with so far have indicated their support of our plan. They recognize that this is a crucial step to fundamentally addressing the debts we have been carrying for many years, and putting the company on a sound financial footing for the future," a senior Nenaco official said.

Nenaco, the shipping subsidiary of Metro Pacific Corp., filed its rehabilitation plan with the courts after what it describes as underhanded attempts by a single creditor to jump ahead of others.

"The unfortunate thing is that Tsuneshi Heavy Industries, a joint venture of the Aboitiz Group in Cebu, has sought to forcibly disrupt our business, our ability to earn revenue, provide much needed transportation services to the public, for payment of a debt that we had already been making payments to," officials said.

Nenaco officials pointed out that prior to the rehabilitation filing, the company had already paid more than P27 million towards the total bill of P130 million owed to Tsuneishi.

Since the filing, and in contravention of a stay order protecting Nenaco assets from the Manila RTC, Tsuneishi has nonetheless sought to seize other Nenaco vessels and disrupt the company’s passenger and freight cargo businesses.

"It makes no sense – Tsuneishi and Aboitiz should know the law quite well – but they have nonetheless decided that their interests go above legal means and are determined to disrupt our business in all manner," Nenaco officials added.

Nenaco officials stressed that despite the pressure being applied by Tsuneishi and Aboitiz, the company was determined to fulfill its mission to the Filipino public and service its 14 ports nationwide.

"We know adversity, and we understand that when confronted with unfair and belligerent tactics from one creditor that we must take steps to protect our business and the interests of all our stakeholders, including our other creditors. Save Tsuneishi, nearly all creditor discussions to date have been amicable, and understanding. Our other creditors know that our only intent is to transform this company into a more profitable one," said a senior Nenaco official.

Nenaco officials disclosed that all ship schedules remain in effect through the critical summer travel season, and that a variety of promotions were being launched to ensure full passenger and freight cargo loads.

"All of our creditors understand that what is critical now is for us to be able to continue with our business – i.e., earn much needed cash – during the summer travel period, which only makes it easier for us to equitably deal with each creditor. Why Tsuneishi and Aboitiz feel that they deserve preference over major banks and other institutions is beyond us," said a Nenaco source.