In a financial report filed with securities regulators, CAP said its deficit also increased to P13.25 billion from only P7.49 billion a year earlier.
The pre-need firm’s share in the net losses of its subsidiaries amounted to P238.08 million while operating expenses reached P3.28 billion.
CAP is seeking a 10-year restructuring of its P2.9-billion loan obligations to creditors as part of its business recovery program submitted to the court.
CAP had sought relief from the Makati Regional Trial Court for a moratorium on the payment of all obligations to planholders and creditors to give it enough breathing room to map out a viable and acceptable rehabilitation plan. The move was also intended to prevent the Securities and Exchange Commission from taking over management of CAP, which could eventually lead to the pre-need firm’s extinction.
In its recovery plan, CAP said it expects its trust fund to increase to P13.56 billion by 2012 with the trust fund achieving a positive balance by 2010. At the end of the implementation of the business plan, CAP projects a trust fund balance of about P9.115 billion with about P395 million in liquid assets.
CAP’s projections show that trust fund balances after 2012 will be positive and increasing from 2013 to 2025, with an ending positive balance of P20.96 billion with liquid assets of about P11.8 billion as of 2025.
Similarly, CAP expects to achieve a positive cash flow from 2005 to 2012 with an ending cash balance as of end- December 2012 of about P289 million. CAP’s capital deficiency will be reduced from P17.574 million to about P9.2 million in 2012.
CAP believes, however, that its current financial condition will change with the institution of some changes in its organization, policies, strategies, operations and finances, as set forth in its business plan.