PT&T secures court OK for early exit from rehabilitation

MANILA, Philippines — Philippine Telegraph & Telephone Corp. (PT&T), a company keen on bidding for the third telco player slot, has secured court approval for its proposed early exit from a court-assisted corporate rehabilitation.

PT&T said yesterday the Regional Trial Court of Makati City Branch 66 has granted its request to exit from rehabilitation subject to compliance with certain requirements in line with the approved rehabilitation plan.

The company last July 30 told the local bourse that it has sought the Makati RTC Branch 66’s approval to make an early exit from a court-assisted corporate rehabilitation.

The proposed exit from corporate rehabilitation would allow the company to grow its operations, which includes participating in the third telco bidding and make further investments in existing fixed broadband business.

“The exit from rehab is well within the plan of our new shareholders and another proof point that PT&T is serious in its intention to be a major player in the Philippines telecommunications industry,” PT&T president and chief executive James Velasquez said earlier.

PT&T holds a 25-year franchise which allows the company to establish, maintain, and operate both wired and wireless telecommunications systems for domestic and international communication in the country.

Its existing network and infrastructure, spanning over 1,000 kilometers of pure fiber optic cables, allow it to easily meet the network demands of customers in the Greater Manila area, Northern and Southern Luzon and Cebu regions.

Part of the compliance for the rehabilitation plan, which was approved in 2011, is for PT&T to conduct a stockholders’ meeting to increase its authorized capital stock that would allow the company to pay its debts through debt-to-equity conversion.

PT&T’s annual stockholders’ meeting is scheduled on Sept. 14.

Under a court-approved 14-year rehabilitation plan, the P8.8 billion debts from its creditors would be paid in redeemable serial preferred shares of PT&T.