Vitarich is a step closer to exiting from rehab
Vitarich Corp. of the Sarmiento family is a step closer to a successful exit from corporate rehabilitation exactly 10 years after it was placed under receivership.
The company informed the Securities and Exchange Commission (SEC) as well as the Philippine Stock Exchange (PSE) that it has entered into an agreement with Kormasinc Inc.
Vitarich and Kormasinc agreed to extinguish all secured debt of Vitarich in accordance with the approved rehabilitation plan.
The rehabilitation receiver has submitted all the relevant documents from Vitarich to the rehabilitation court.
Vitarich has a pending motion for successful exit from corporate rehabilitation.
The company sought court relief in 2006 to be able service its P3.25 billion obligations resulting from the Asian financial crisis in 1997 and the avian flu outbreak.
Kormasinc was incorporated as a special purpose vehicle in April 2008. It has a standing P2.38 billion claim on Vitarich?s assets based on obligations the feedmill business has asked to be restructured under the rehabilitation plan.
ADM Capital and Altus Capital have infused P2.38 billion in capital through Kormasinc to absorb all of the debts of Vitarich.
In 2014, Vitarich sold its 13-hectare property in Marilao, Bulacan to mass housing developer 8990 Holdings Inc. for P610 million.