Liberty Telecoms files for debt relief

Weighed down by its huge debt, Liberty Telecoms Holdings Inc. and its subsidiaries had sought a moratorium on the payment of its debts worth around P1.3 billion.

Controlled by the family of businessman Raymond Moreno, Liberty and subsidiaries Liberty Broadcasting Network Inc. and Skyphone Logistics Inc. filed with the Makati Regional Trial Court a petition for suspension of debt payments to stop creditors from instituting foreclosure proceedings against its assets while an acceptable rehabilitation plan is being drafted.

In view of this, the Philippine Stock Exchange yesterday suspended indefinitely trading in Liberty’s shares.

Liberty’s business strategy is to offer products and services to meet the telecommunication needs of its various customers. It strives to create a niche in the vast telecommunications sector by providing products and services that will answer customer requirements in both voice and data communications.

The company is scouring for new funds to allow it to pursue expansion plans which had been put in the back burner after its foreign partner Deutsche Telecoms disposed off its all Philippine interests.

Moreno had been authorized by the board to take the necessary measures to prevent the continuous losses sustained by Liberty.

Among these options include sourcing investments, restructuring of existing loans, and filing of a petition for rehabilitation.

Liberty is currently in talks with three possible investors that could either infuse fresh equity or provide new loans.

Last year, consolidated assets of Liberty fell by seven percent to P3.49 billion from P3.75 billion, largely due to the decrease in prepayment and other current assets by 22.8 percent.