In response to a BIZ BUZZ article that said Phoenix Petroleum [PNX suspended] [link] was “quietly selling off bits and pieces” of the company, PNX clarified that its executives have already been authorized by the board of directors to “dispose of its non-performing and non-core assets in order to raise capital and streamline its operations.” PNX further clarified that it had no insight into news about its owner’s other business dealings, such as the potential sale of Conti’s Bakeshop and Wendy’s Philippines to Crystal Jacinto.
MB BOTTOM-LINE: I’d love to see the “correspondence” that PNX is responding to here, because their clarification starts off with a passionate assertion that PNX’s business has “nothing to do with any administration, past or present”. The article starts off with the line, “What a difference a change in administration can make”, but references former President Rodrigo Duterte more like a timestamp (“During the time of former President Rodrigo Duterte...”), and doesn’t tie Dennis Uy’s current troubles to any actions or non-actions of the current government. The article clearly attributes the sorry state of the Uy Group’s finances to the unsustainable debts it accumulated during the low rate years that coincided with Mr. Duterte’s term. PNX didn’t comment on the article’s assertions related to PNX, that “stations across the country have been bought and taken over by other parties, providing Uy with needed cash and offers to buy other stations are being entertained.” PNX shareholders (especially those of its delinquent preferred shares) will probably appreciate any efforts to claw back to break-even. It’s not a sign of weakness to take action to address the real problems facing the company.
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