Vitarich gives up Bulacan, Davao properties to exit receivership
The Sarmiento family’s Vitarich Corp. has given up its properties in Bulacan and Davao to Kormasinc to retire a substantial amount of its debt and clean up its balance sheet.
In a disclosure to the stock exchange, Vitarich said Kormasinc is taking over two parcels of its industrial land in Marilao, Bulacan with a total area of 39,000 square meters worth P304 million and two parcels of industrial land in Davao City with a total area of 37,734 square meters worth P59 million under a dacion en pago arrangement or payment in kind scheme.
Vitarich said the properties and the facilities on them are ‘non-core’ assets.
Vitarich also said the remaining balance of P39 million of its debt that Kormasinc will take over will be covered by post-dated cheques.
In its disclosure, Vitarich said it signed a memorandum of agreement with Kormasinc to retire the remaining debt in its balance sheet that should improve its liquidity position and its financial ratios.
Vitarich said a new judge has been assigned to its court-approved rehabilitation plan and that its motion to exit the rehabilitation will be the subject of a hearing on April 28, 2016.
“We are praying to get exit approval since we effectively have no more debt thus no more reason to stay in receivership,” Vitarich said. (By: Eileen A. Mencias)