Nenaco gets reprieve on P2.5-B debt

Negros Navigation Co. Inc. (Nenaco), the shipping unit of holding company Metro Pacific Corp., has secured a court reprieve on the payment of its P2.5 billion debts to creditors, effectively shielding the company from any foreclosure proceedings.

The stay order issued by the Manila Regional Trial Court last April 1 also bars Nenaco from selling or transferring any of its properties, except in the ordinary course of business.

The Manila RTC also appointed Sulficio O. Tagud Jr. as rehabilitation receiver for Nenaco. Tagud, who is tasked with overseeing the shipping company’s financial transactions during the rehabilitation period, was formerly with the Ayala Investment and Development Corp. and was a bank shipping specialist.

The initial hearing of the petition for corporate rehabilitation and suspension of debt payments of Nenaco has been set on May 7, 2004.

Nenaco said the stay order ensures the sanctity of its assets while its rehabilitation program is being considered by the court, and prevents any creditor from attempting to gain advantage over others in an attempt to seize or attach any of the company’s assets.

"We welcome both the stay order and the appointment of Mr. Tagud as important early steps towards the implementation of our rehabilitation program," Nenaco corporate information officer Virgenito Torcal said.

Nenaco said it is optimistic that given a breathing spell, it would be able to repay all its debts.

The shipping firm owes the Japanese shiprepair and drydocking provider Tsuneishi Heavy Industries Inc. over P100 million.

Nenaco claimed the problem started, however, when Tsuneishi started assailing the company just as it was close to signing a deal with prospective investors willing to infuse fresh capital into the shipping firm.

Nenaco had also blamed its rival, Aboitiz Transport Systems Corp., which is Tsuneishi’s partner in the Philippines.

As this developed, Nenaco officials are set to lodge a complaint with the Department of Transportation and Communications (DOTC) and the Japanese Embassy against Tsuneishi, which has allegedly resorted to harassing Nenaco in order to enforce its monetary claim against the local shipping firm.

Nenaco officials said they have already drafted a formal letter of complaint with the Japanese Ambassador and the DOTC against the "unlawful and belligerent actions" of Tsuneishi, particularly its president Kenji Kawano.

Tsuneishi representatives reportedly tried to seize all of Nenaco’s boats during the Holy Week, when thousands of passengers were scheduled to travel.

Tsuneishi had likewise petitioned a Cebu court to attach a Nenaco vessel as payment for unpaid accounts. Tsuneishi claimed that Nenaco had failed to fulfill its debt obligations despite the restructuring and rescheduling of the account.

Nenaco pointed out that prior to the filing of its rehabilitation plan, the company had already paid more than P27 million to Tsuneishi. Furthermore, Tsuneishi has already "attached" one of Nenaco’s ships said to be valued four times more than Nenaco’s debt to Tsuneishi.