Alliance Select Foods International shuts down Indonesian fishing subsidiary
Alliance Select Foods International Inc. is closing down its fishing company subsidiary in Indonesia and reallocating funds meant for it to its General Santos facility.
In a disclosure to the stock exchange, Alliance Select Foods International said its board of directors approved the cessation of operations of PT Van de Zee on March 7, 2016 after the Indonesian Ministry of Fisheries revoked its license.
PT Van De Zee, a fishing company based in Bitung, Indonesia, is a subsidiary of PT IAFI, a company that is 99.98-perent owned by Alliance Select Foods International that is also based in Indonesia.
The company said there is strong sentiment against foreigners in Indonesia’s fishing industry.
With the closure of the PT Van De Zee, Alliance Select Foods said it will now be funnel the $2 million earmarked for it to the company’s facility in General Santos City.
The funds will be used to finance the purchases of fish and other materials needed by Alliance Select Foods International. The company originally intended to spend $1.5 million for the fishing equipment and vessels of PT Van De Zee and $500,000 for PT Van De Zee’s working capital.
The company is also reallocating $400 million in funds meant for the capital expenditure of PT IAFI as working capital of its General Santos facility.
Alliance Select Foods has trimmed the working capital of PT IAFI to $4 million from $6.5 million and reallocated the balance of $2.5 million also for working capital of the General Santos facility.(By: Eileen A. Mencias)