By Emmie V. Abadilla
The Philippine Telegraph and Telephone Corp. (PT&T) is raising its authorized capital stock from P3.8 billion to P15.6 billion to pay its outstanding obligations as well as finance its expansion, president and chief executive James G. Velasquez yesterday told reporters after the telco’s stockholders’ meeting.
In just one year of new ownership, PT&T’s financial results have significantly improved after being debt-ridden for more than a decade.
Last year, Menlo Capital Corp., jointly owned by Nickel Asia Corp. founder Salvador Zamora II and businessman Benjamin Bitanga acquired substantial interest in PT&T from Republic Telecommunications Holdings, Inc.
The new management enabled PT&T to exit its corporate rehabilitation earlier than the scheduled 2025 target.
“The exit from rehab is well within the plan of our new shareholders and another proof point that PT&T is serious in its intention to be a major player in the Philippines telecommunication industry,” the president pointed out.
“This has been a primary goal since new management took over and is crucial to pursuing the growth potential of PT&T.”
On August 6, 2018, the Regional Trial Court of Makati City, Branch 66 approved the request of PT&T that it be allowed to exit from rehabilitation subject to compliance with certain requirements in line with the approved Rehabilitation Plan.
Under a court-approved 14-year Rehabilitation Plan, the P8.8 billion debts from its creditors would be paid in redeemable serial preferred shares of PT&T. The company’s Rehabilitation Plan was approved in 2011.
PT&T also plans to re-list at the Philippine Stock Exchange after it voluntarily suspended trading last 2004. Currently, PT&T is working double time to cooperate with the PSE to address all compliance issues, including settlement of all past penalties, in order to lift its suspension on trading.
“It is important to be listed with the PSE,” Velasquez reiterated.