Appointment of new judge delays rehab exit of Vitarich
The appointment of a new judge has delayed the successful exit of Vitarich Corp. of the Sarmiento family from corporate rehabilitation.
“Motion for successful exit is still pending resolution by the new rehabilitation judge who is going through the voluminous records of the case,” Vitarich said.
The company informed the Securities and Exchange Commission (SEC) and Philippine Stock Exchange (PSE) the rehabilitation court approved the agreement between Vitarich and Kormasinc Inc.
Vitarich and Kormasinc earlier agreed to extinguish all secured debts of Vitarich in accordance with the approved rehabilitation plan.
Vitarich and Kormasinc, with the initiative and consent of the rehabilitation receiver executed a Memorandum of Agreement for dacion of non-core assets at full appraised value of P373.19 million in Bulacan and Davao.
The remaining balance of P39.49 million shall be covered by post-dated check.
Kormasinc has already assigned back all its security interest in the Mortgage Trust Indenture to Vitarich.
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.