The Securities and Exchange Commission approved the quasi-reorganization of property developer Philippine Realty and Holdings Corp. that will enable it to wipe off P1.7 billion worth of deficit.
PRHC said in a disclosure to the stock exchange the SEC approved the reduction in the par value of the company’s shares to P0.50 from P1 per share and the reduction in the companies authorized capital stock to P4 billion from P8 billion.
“The restructuring of the corporation’s equity is being undertaken to create additional paid-in capital which will be applied to lessen the corporation’s deficit and shall significantly expedite the corporation’s ability to declare dividends to its shareholders,” PRHC said.
The company’s quasi-reorganization came two years after the company exited corporate rehabilitation.
It was also a critical step before the company could push through with its plan to raise fresh capital to bankroll the planned residential, office, retail and master-planned township projects, PRHC said.
PRHC announced last year it would diversify into new businesses, including education, healthcare, financial services and power projects to provide the company with additional revenue stream and expand its business portfolio.
The company said it planned to acquire a majority stake in an upstart company involved in converting plastic wastes into fuel.
It said for its expansion healthcare sector, it planned to build a residential tower that would target the growing active elders.
The company last year launched Sky Villas Tower, the second tower within the five-tower, two-hectare upscale residential development in New Manila, Quezon City.
PRHC said it had identified several schools and universities that it wanted to acquire to support plans to venture into education space.
PRHC is known for major projects such as the Philippine Stock Exchange Center in Ortigas and the Alexandra mid-rise luxury condominiums also in Ortigas.
After being hit by the 1997 Asian financial crisis, the company filed for corporate rehabilitation in 2002 to stop creditors from foreclosing on its properties.
The company’s total outstanding bank loans stood P2.2 billion when it filed for rehabilitation.
Share price of PRHC on Monday gained 14.1 percent to P0.365.