PT&T exits corporate rehabilitation

MANILA, Philippines — Philippine Telegraph & Telephone Corp. (PT&T) is officially out of a court-assisted corporate rehabilitation and now has its sights set on further growing its operations.

PT&T said its exit from rehabilitation proceedings as ordered by the Makati Regional Trial Court Branch 66 last Aug. 6 is no longer conditional after the company substantially complied with the conditions set forth in the court order.

PT&T received last Friday an order from the Makati RTC Branch 66 denying the opposition and motions for reconsideration filed by the creditors of the company on the rehabilitation court’s Aug. 6 order allowing PT&T to exit from rehabilitation subject to the fulfillment of certain conditions.

In the same order, the rehabilitation court also confirmed that PT&T substantially complied with the conditions provided for under its previous order and as such, declared PT&T out of rehabilitation and its exit no longer conditional.

“This is indeed welcome news. We have been waiting for this and it is in line with our growth aspirations and vision of turning PT&T into a digital services provider,” PT&T president and CEO James Velasquez said.

PT&T said leaving corporate rehabilitation allows the company to further grow its operations, while also unlocking its true potential as a fixed and wireless broadband player from its roots in the telecommunications industries since 1962.

PT&T held its stockholders’ meeting last Sept. 20 and was able to secure the approval of the Securities and Exchange Commission last Oct. 31 to increase  its capital stock and conduct a debt-to-equity conversion.

“PT&T now has the financial muscle to support the company’s existing operations as well as its promised multi billion peso capital expenditure to roll-out infrastructure over a five-year period to compete aggressively in the Philippines telecommunications industry,” it said.

As of October, PT&T’s total liabilities have been reduced significantly to P1.5 billion from P10 billion with majority of its debt converted to preferred shares.

The company’s paid-up capital also increased to P10.9 billion from P2 billion, while its assets reached P837.60 million as of end-October, higher compared to P759.46 million in 2017.

PT&T also reported a 192 percent rise in net income in fiscal year ending June 2018 as the company’s revenue soared 95 percent year-on-year.

PT&T attributed the increase in revenue to the rise in the number of clients since new management came in August 2017.

Menlo Capital Corp. in August last year acquired substantial interest in PT&T from Republic Telecommunications Holdings Inc., ushering in a new management to the company.

PT&T’s Congressional franchise was renewed last July 2016.