C&P Homes increases capital stock to P7 billion

Low-cost housing developer C&P Homes Inc. has approved the increase in its authorized capital stock to P7 billion as part of its capital and debt restructuring program aimed at cleaning up its books.

C&P Homes said the new capitalization consists of seven billion common shares each with a par value of P1.

Under the original plan, the authorized capital of the company was supposed to be cut to P500 million, divided into 500 million common shares each from P5 billion, after which C&P would issue new shares to bring its capital back to P5 billion.

The new shares will be issued to investors who have agreed to convert their holdings of C&P long-term commercial papers into C&P shares.

C&P said the decision to adjust the amount of the proposed increase in authorized capital came after confirmation of the amount of long-term commercial paper debt to be converted into new shares.

After receiving the debt conversion total, the company said the board approved the issuance of a total of 3.68 billion shares at par or at a total issue price of P3.68 billion.

The company’s board last week approved the restructuring of $150 million worth of floating-rate notes.

C&P will present the plan for shareholders’ approval in a special meeting scheduled for Nov. 14. Shareholders on record as of Oct. 10 are qualified to vote on the plan.