Lepanto seeks court reprieve on debt payment

MANILA, Philippines - Lepanto Ceramics Inc. (LCI), an indirect subsidiary of listed firm Prime Orion Philippines, has sought a court reprieve on debt payments to stem continuing losses and allow it to revive its business.

In a disclosure to the stock exchange yesterday, Prime Orion said LCI filed a petition for rehabilitation with the Regional Trial Court of Calamba.

With the rehabilitation program, LCI aims to ensure the continuing delivery of suppliers, rebuild its business by utilizing its cashflow directly for operations and service the obligations with creditors.

Based on latest financial statements filed with securities regulators, LCI nearly doubled its loss in the nine months ending September this year to P15 million, mainly due to lower sales volume and higher cost of production.

LCI (formerly known as Guoco Ceramics Inc.) was established on April 23, 1990 and has become the top manufacturer of ceramic floor and wall tiles for residential, commercial and industrial projects in the country under the brand Lepanto Tiles.

Its manufacturing plant, located on a 14.3-hectare company-owned property within the industrial city of Calamba, Laguna, ensures a steady and consistent supply of tile designs that are available in the domestic market through a network of over 300 national and regional distributors/dealers across Luzon, Visayas and Mindanao.

LCI’s product line is constantly being refined to keep pace with the latest technology and its color palette reflects current trends in interior surfacing materials.

Aside from LCI, Prime Orion has interests in industries such as non-life insurance, real estate/property management, manufacturing, distribution, land titling and information technology consulting services.