Court approves Liberty Telecoms rehab

Liberty Telecoms Holdings Inc., controlled by the family of businessman Raymond Moreno, got a new lease on life after a local court approved its petition for corporate rehabilitation.

"We received information that our petition for corporate rehabilitation was approved by the rehabilitation court," Liberty said in a disclosure statement filed with the Philippine Stock Exchange (PSE).

Liberty told the PSE it would comply with all requirements and procedures on relisting.

Weighed down by its P1.3 billion debt, Liberty Telecoms together with subsidiaries Liberty Network Inc. and Skyphone Logistics Inc. sought court intervention to stop creditors from instituting foreclosure proceedings against its assets.

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 looking 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 all of its 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.