National Book Store (NBS) of the Ramos family has no plan to liquidate its financially struggling firm, Vulcan Industrial and Mining Corp.
NBS group made the statement as Vulcan amassed a P993.3 million deficit from cumulative losses as of March 2020, or 15 months after it divested all its interests in mining and oil exploration.
“Management has neither the intention nor the need to liquidate the company in the foreseeable future. NBS is committed to provide financial support to enable the company to continue paying its expenses and settle its liabilities for at least 12 months from the balance sheet date, and to enable the company to operate as a going concern,” said Vulcan.
Vulcan posted a capital deficiency of P810,000 and negative operating cash flows of P300,000 as of the first quarter this year.
Vulcan admitted “material uncertainty exists that may cast significant doubts on the company’s ability to continue as a going concern.”
NBS was supposed to use Vulcan as a backdoor to access the stock market. But it dropped this plan in 2017.