SEC okays C&P Homes’ capital increase to P7B

The Securities and Exchange Commission (SEC) has approved the plan of low-cost housing developer C&P Homes Inc. to raise its authorized capital stock to P7 billion, from P500 million.

The capital build-up forms part of C&P’s capital and debt restructuring program aimed at cleaning up its books.

C&P said the increase in capital stock would allow it to invest, purchase and own properties that would further boost the company’s operations.

Documents filed with the SEC show that 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 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 paper 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.

The company is restructuring $150 million worth of floating-rate notes.

C&P continues to settle some of its obligations through outright and unconditional sale of real estate properties and sale of assets as liquidity mechanism.

The firm’s creditors include Bank of the Philippine Islands, Equitable PCI Bank, International Exchange Bank and Rizal Commercial Banking Corp.

C&P, the country’s largest socialized housing developer, has also entered into swapping deals with its business partners to service some operational requirements.

The company is strengthening its foothold in the middle-income market through its Crown Asia projects.

Its home designs range in gross floor area from 21 to 74 square meters and the selling price ranges from P150,000 to P2 million.

C&P Homes is more popularly known under the brands Camella and Palmera. The Camella projects focus in Southern Metro Manila, Cavite, Laguna and Batangas regions while the Palmera brands are visible in northeastern Metro Manila, Rizal and Bulacan.