Quick Take: Suntrust's loan and 1 more market update

Monde Nissin [MONDE 8.30 0.6%] [link] received SEC approval for its equity restructuring, so it was able to wipe out its accumulated deficit of P7,153,900,000 using the same amount of additional paid-up capital that it received as part of its IPO.

MB Quick Take: The move is a paper accounting move that appears designed to enable MONDE to declare dividends, as a company is not permitted to declare dividends when it carries an accumulated deficit. The zero-out doesn’t impact the par value of the shares.
 

Suntrust [SUN 0.97 3.2%] [link] said that its board approved a P25 billion loan from China Bank [CHIB 30.50] to finance “project costs and the construction of the Main Casino Project.”

MB Quick Take: I’m not an expert on what is happening with SUN, or with any of its partners like Andrew Tan through Alliance Global [AGI 13.58 1.0%], but this is a huge loan and a definite sign of life. I hate the way this company operates, but I don’t think it cares too much about making nice with local investors.

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