Now restructures to wipe out deficit

In order to expand its core wireless business over the short term, Now Corporation is restructuring its equity to wipe out its accumulated deficit of 1402.1 million

The Securities and Exchange Commission (SEC) has already approved the application of the publicly listed telco to eliminate its deficit last year by reducing its surplus of 1455.18 million.

The company also has a pending application filed with the SEC to convert its outstanding shareholders' advances of 1264 million to equity.

The strategies are expected to strengthen Now's finances. In particular, wiping out its deficit removes a major obstacle to fund-raising.

Meanwhile, the conversion of advances to equity, once approved, will improve the company's debt-to-equity ratio from 0.70:1 to 0.37:1. Post debt-to-equity, equity will account for 73% of total assets as compared to 59 percent prior to equity conversion.

Now intends to raise funds, either from the capital or debt markets to finance its capital expenditures to cater to the growing fixed wireless broadband service.

The telco will expand the footprint of its broadband business to areas outside of its core market of Metro Manila as demand for broadband is growing rapidly in underserved or unserved areas throughout the archipelago.

The company maintains that its wireless solution is "superior to fiber cable based infrastructure in terms of ease, time and cost to deploy" and it can use its wireless capability to reach these markets.