Filsyn restructures to wipe out P1.86-B deficit

Filsyn [FYN suspended] [link] wiped out its P1.86 billion deficit (as of Dec. 31, 2021) by way of an equity restructuring that was approved by the SEC. The restructuring will take P1.86 billion in additional paid-in capital and use that to eliminate the company’s accumulated deficit of P1.86 billion. The company will be left with P335 million in additional paid-in capital that, according to the disclosure, “cannot be applied for future losses that may be incurred by Filsyn without prior approval of the SEC.” FYN has been suspended since 2002 for reporting failures and applied with the SEC for approval of this transaction back in 2021. 

 

MB bottom-line: This is another of those companies that have been suspended for longer than a lot of traders have even been alive. I’m not a huge fan of allowing a company like FYN to squat on a PSE position for 22 years and then get back to trading by paying fines and publishing all the reports that it missed. I’m glossing over a ton of hoops that the FYN ownership group will need to jump through with the SEC and PSE to get back to trading, but if they can do it, I’m at least happy for the trapped public float shareholders. The ones who are still alive might be able to sell whatever stake they held in this company before it just decided to peace out two decades ago. I’m pleased to see the PSE doing a better job of enforcing the rules to delist companies like FYN, and I guess I’m happy to see some of these zombies coming back to life. May there be fewer zombies.

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