Uniwide hits SEC on closure order

MANILA, Philippines - The Uniwide Group’s retail operations were still viable when the Securities and Exchange Commission (SEC) terminated its rehabilitation plan last May.

A report submitted last February by SEC’s own receiver committee to the Court of Appeals (CA) stated that the conglomerate had trimmed its secured debts by 80 percent to just P1.36 billion and initiated “aggressive” steps to boost revenues.  

Still, the SEC ordered termination of Uniwide’s 15-year rehabilitation plan based on older recommendations of a hearing panel in 2010.

This is the main contention of Uniwide in questioning the SEC order before the appellate court.

The rehabilitation receiver committee led by lawyer Julio Elamparo submitted to the SEC last February its finding that the six-member conglomerate is recovering and its retail operations were “still viable.”

The committee said Uniwide had already pruned its secured debts to just P1.364 billion, after settling P6.160 billion of its P7.525 billion loans, mostly through dacion en pago arrangements.

It was found that the remaining P1.364 billion in secured credits covers the amount Uniwide still owes its last two remaining creditor-banks-the Philippine National Bank or PNB (P832.96 million) and Allied Bank (P360.65 million). 

“Uniwide will continue to cater to the C and D (Income Bracket) market, which are mostly the Divisoria and Baclaran customers/patrons,” said Elamparo in his yearend report, which was submitted to the SEC last Feb. 26. “It will pursue to increase its target sales through aggressive marketing programs and efficient operations and further maximize its leasable areas/spaces,” read the report.