Cavite RTC junks Steniel petition

The Cavite Regional Trial Court has dismissed the petition for suspension of debt payments filed by publicly-listed carton box maker Steniel Manufacturing Corp. and subsidiaries Steniel Cavite Packaging Corp. and Steniel Land Corp.

In a disclosure to the Philippine Stock Exchange, Steniel said it has received copies of the order of dismissal and the lifting of the separate stay order issued on Nov. 27, 2007. The debt-strapped companies have 15 days to appeal the order.

With the dismissal, creditors of Steniel group can now institute foreclosure proceedings against their assets.

The Steniel group sought debt relief from the court in November last year due to tight liquidity problems that have hobbled their ability to settle debt obligations.

Banks declared Steniel in default in May 2006 after it failed to pay quarterly principal and interest debt payments beginning March 2004.

Among its creditor-banks include Bank of the Philippine Islands, Metropolitan Bank and Trust Co. and Chinatrust Phils.

As of end-March this year, Steniel registered total debt of P1.28 billion, slightly higher than the previous year’s level of P1.25 billion. Assets, on the other hand, stood at P417 million during the same period.

Incorporated in 1963, Steniel is the single-largest independent manufacturer of corrugated fiberboard containers in the country. It also manufactures plastic containers and other flexible packaging.

The business operations of the Cavite plant under Steniel Cavite Packaging slowed down in 2006, resulting in the closure of the company in view of continued losses since its incorporation.

The group also has facilities in Cebu and Davao and each is fully equipped with corrugator and converting machines. The finished products are mainly used for packaging consumer goods such as fruits and canned sardines, furniture and electronic goods.