Vitarich rehab plan underway, buyers keen
Poultry and feed firm Vitarich Corporation
last week filed a petition for corporate rehabilitation. The Bulacan Regional
Trial Court approved the company's petition by issuing a stay order in the
enforcement of all claims by creditors.
Sarmiento said the company needs breathing room, as the demands made by its
creditors would have led to the collapse of the company.
A rehabilitation receiver has been appointed and the initial hearing on the
petition for rehabilitation has been scheduled for 8 November 2006.
Since the court order was issued, two companies - one local and one foreign
- have expressed interest in taking over the financially troubled company.
But the court order bars Vitarich from selling, encumbering, transferring
or disposing its properties except in the ordinary course of business.
It also prohibits Vitarich from making any payment of its liabilities
starting on the date of the filing of petition for rehabilitation while barring
suppliers from withholding goods and services if the firm continues to pay for
these goods and services.
Sarmiento said his family, which holds a 65 percent stake in Vitarich, was
willing to sell its interest but only after the implementation of the
To comment, login here
Or register to be able to comment.