Alliance Select OKs equity restructuring

Listed seafood company Alliance Select Foods International Inc. (ASFII) has approved an equity restructuring program in accordance with its turnaround strategy.

The program is still subject to the approval of the Securities and Exchange Commission. Under the plan, Alliance Select’s par value would be reduced to 50 centavos from P1 but the number of outstanding shares of the company and stockholders’ respective ownership interests will remain the same.

Once effected, the proposed restructuring of equity will eliminate the deficit of the company that was accumulated for several years prior to Alliance Select’s current profitability.

Alliance Select cited other companies that did equity restructuring such as DFNN, Philippine Realty and Holdings Corp. and Millennium Global Holdings.

“The objective of these companies in restructuring is to wipe out the deficit in their retained earnings and/or position the company to distribute dividends,” it said.

Company officials earlier said Alliance Select would work to achieve a turnaround in 2017.

Thus, the equity restructuring program would place the company in a better financial position to declare dividends at the appropriate time.

Alliance Select is a homegrown international seafood company with its products distributed in various foreign markets including Europe, the US, Japan and the Middle East.

In the first half of the year, the company reported a 126 percent growth in net income on the back of a 10 percent rise in consolidated net revenues to $35 million.

Last year, the company elected a new board after it was earlier brought to court by its Singaporean-led shareholders who filed a petition and successfully obtained a temporary restraining order that prevented the company from holding its annual general membership meeting.