PT&T resumes trade after 20-year hiatus
By adhering to the requirements outlined in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange.
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By adhering to the requirements outlined in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange.
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Nearly two decades since its voluntary suspension, telecommunications firm Philippine Telegraph and Telephone Corp. (PT&T) is expecting to resume trading soon after it managed to repay P9 billion in capital deficiency following a debt-to-equity conversion.
“While we cannot provide a specific date at this time, we are diligently fulfilling the requirements outlined in our rehabilitation plan,” PT&T president and CEO James Velasquez said in a statement on Friday.
Velasquez pointed out that the company is presently securing all the necessary approvals from the PSE to resume trading as soon as possible.
“By adhering to the requirements outlined in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange,” he added.
Disclosures breach
PT&T shares were voluntarily suspended in December 2004 due to non-compliance with disclosure and reportorial requirements.
However, PT&T has recently successfully held a debt-to-equity conversion, which was a crucial component of its ongoing implementation of key rehabilitation orders.
The conversion allowed the company to eliminate its total capital deficiency of P9.3 billion, resulting in a substantial decrease in liabilities that strengthened its capital position.
As a result of this impressive turnaround, the company achieved a growth of over 100 percent year-on-year.
Furthermore, in November 2023, the Securities and Exchange Commission (SEC) approved PT&T’s increase in authorized capital stock from P3.8 billion to P12.6 billion.
“This increase facilitated the P8.9 billion debt-to-equity conversion, paving the way for the issuance of preferred shares (Series A, B, and C) as outlined in the Rehabilitation Plan,” the telco said.
“Furthermore, it enabled the partial settlement of statutory obligations, salaries, wages, and other employee benefits from the escrow accounts as of December 2023,” it added.
In 2018, the Makati Regional Trial Court Branch 66 declared PT&T to be out of court-assisted corporate rehabilitation, but under certain conditions.
The court-approved 14-year rehabilitation plan required PT&T to settle P8.8 billion worth of debts by paying creditors with redeemable serial preferred shares of the company.
Based on its latest financial results, PT&T delivered a 5 percent year-on-year growth in gross revenue and an over two-fold or 155 percent increase in their bottom line in 2023.
