September 20, 2006

Trading of major Philippines feeds company suspended to restructure debt

Stock-trading of Vitarich, a leading integrated producer and wholesaler of poultry and animal feed products in the Philippines, was suspended on the Philippine Stock Exchange Tuesday (Sep 19) after the company filed a petition for corporate rehabilitation.

Exchange rules require immediate suspension in the trading of companies filing rehabilitation. The suspension would last until the court approves a rehabilitation plan and the company submits a corporate disclosure on the effects of the programme.

Vitarich, a family-owned business, last week filed for corporate rehabilitation to allow the poultry firm to generate more capital to increase its feeds business.

The company sought a suspension of debt and interest payments and asked the court to allow it to extend its current loan repayment from 12 years to 15 years.

Bird flu outbreaks in other countries, which affected poultry exports this year, was believed to have caused a strain in the company's finances.