Liberty Telecoms exits rehab 20 months ahead of schedule
MANILA, Philippines – Listed Liberty Telecoms Holdings Incorporated, jointly owned by diversified conglomerate San Miguel Corporation (SMC) and Qatar Telecom, has completed its rehabilitation program, 20 months ahead of schedule, prompting a court to terminate its rehabilitation proceedings.
“The company received a copy of the order of the regional trial court closing and terminating the rehabilitation proceedings involving the company and its subsidiaries, wi-tribe Telecoms Incorporated and Skyphone Logistics Incorporated, as the approved rehabilitation plan has been fully implemented,” said Liberty Telecoms president and CEO Bienvenido Bañas.
Bañas said the company received the order on May 15 and informed the Philippine Stock Exchange (PSE) on the same day.
In the order, dated May 12, Makati City Regional Trial Court Branch 149 Presiding Judge Cesar Untalan said rehabilitation receiver Monico Jacob filed a recommendation to terminate rehabilitation proceedings of the Liberty Group before the lower court last May 8.
Jacob stated in his recommendation that the objectives of the rehabilitation have been successfully met.
“Finding the recommendation of the rehabilitation receiver to be with merit, the same is approved and this court would like to extend its great appreciation to him. Wherefore, the instant rehabilitation proceedings is closed and terminated,” Untalan said in the one-page order.
The Liberty Group was placed under corporate rehabilitation and debt restructuring after it suspended its operations in April 2005 due to lack of capital.
The Makati City regional trial court approved the revised rehabilitation plan of the Liberty Group in December 2006.
Under the plan, the company’s original schedule of getting out of rehabilitation is in December 2016.
Liberty Telecoms managed to trim its total comprehensive loss by 31.7% to P210.16 million ($4.72 million) in the first quarter of the year from P307.58 million ($6.91 million) in the same period last year.
The company’s deficit, however, stood at P10 billion ($224.9 million) as of end-March this year, but the majority shareholders remained fully committed to support the operations of the Liberty Group.
Liberty Telecoms is still pursuing plans to launch various services in the telecommunication industry despite the dominance of major players led by Philippine Long Distance Telephone Corporation. (PLDT) and Ayala-led Globe Telecom Incorporated.
Liberty Telecoms chairman and SMC president Ramon S. Ang earlier disclosed that the company intends to venture into the mobile business to provide voice calls, short messaging system (SMS) or text messaging as well as mobile broadband. – Rappler.com
$1 = P44.45