Court orders liquidation of Uniwide’s assets
The Paranaque Regional Trial Court has issued an order directing the dissolution and liquidation of the Uniwide Group of businessman Jimmy Gow, the Philippine Daily Inquirer reported.
This follows the Securities and Exchange Commission’s decision to terminate the rehabilitate proceedings of the Uniwide Group, which comprises Uniwide Sales, Uniwide Holdings, Naic Resources and Development Corp., Uniwide Sales Realty and Resources Corp., First Paragon Corp. and Uniwide Sales Warehouse Club.
The Uniwide Group used to be one of the country’s leading retail developers until it embarked on an aggressive expansion and diversification program that hobbled its ability to pay its debt. It sought debt reprieve in 1999 and applied for corporate rehabilitation owing to weak sales, poor receivable collections and high interest payments.
The SEC said Uniwide, which owns businesses in retail, real estate and franchising, was insolvent as its liabilities further increased to P12.29 billion as against assets of P2.73 billion.
Majority of Uniwide’s creditors had rejected the rehabilitation plan.