By James A. Loyola
Swift Foods, Inc. is undertaking a quasi-reorganization that will involve reducing the par value of its shares in order to wipe out the deficit in its capital amounting to almost ₱3 billion.
In a disclosure to the Philippine Stock Exchange, Swift said its Board of Directors has approved the recommendation by management to reduce the par value of the corporation from ₱1.00 to ₱0.089.
The reduction in the par value of Swift Foods, Inc. are for both Common and Preferred shares.
This will require the firm to amend the Seventh Article of its Articles of Incorporation to reflect this change. The reduction in par will eliminate the Corporation’s deficit.
The Board’s approval to reduce par value will be submitted to the stockholders for ratification on December 20, 2019.
Swift noted that, “The Equity Restructuring will not change the Company’s number of issued and outstanding shares and stockholders’ interest in the Company.”
The basis of the computation of the additional paid-in capital is based from the 1.82 billion Common Outstanding Shares of and 48.63 million Preferred Issued shares in addition to the 11.1 million Preferred Treasury Shares with the total of 59.73 million Preferred shares.
The deficit cut-off date and Additional Paid-in Capital cut-off date is December 31, 2018.Total Stockholders’ Equity cut-off is also December 31, 2018. These will reduce the Deficit amounting of ₱2.99 billion for the period ended December 31, 2018.