MANILA - Vitarich Corp. on Tuesday secured board clearance to raise its capital stock to accommodate the issuance of new shares to creditors.
In a disclosure to the Philippine Stock Exchange, the listed animal feeds producer said it will hike its authorized capital stock from P1.5 billion to P3.5 billion.
Vitarich also obtained board approval to issue 2 billion new common shares to creditors that would convert outstanding debt for an equity interest in the company.
The transaction is subject to the approval of the Securities and Exchange Commission and the court hearing the company's rehabilitation case.
The shares will be listed with the local bourse, subject to the approval of stockholders. Vitarich will present the board resolutions to stockholders for approval in a special meeting on October 15.
Vitarich has been under corporate rehabilitation since 2006 amid difficulties in paying off P3.23 billion in debt. The Asian financial crisis and the avian flu outbreak in 2003 weighed heavily on the company's finances.
Vitarich is engaged in the production and distribution of various poultry products such as live and dressed chicken, day-old chicks and animal and aqua feeds, among others.
source: interaksyon.com
