SEC approves Alliance Select equity restructuring

Listed Alliance Select Foods International Inc. has obtained the approval of the Securities and Exchange Commission (SEC) for its equity restructuring program to eliminate its current deficit as part of its overall turnaround strategy.

Toward this end, Alliance Select’s par value would be reduced to 50 centavos from one peso and its resulting additional paid-in capital (APIC) would be applied against its retained earnings deficit as of May 31, 2017.

“The approved equity restructuring program does not affect the company’s number of outstanding shares and will not affect a stockholder’s ownership interest in the company. The same simply wipes out the deficit with the use of APIC as of May 31, 2017,” Alliance Select said.

Moving forward, the company is optimistic it would be able to improve its financial health.

“We are very pleased to receive SEC’s approval of the equity restructuring as this will improve the company’s financial profile and optimize its performance moving forward,” it adds.

Incorporated in 2003, Alliance Select is a homegrown international seafood company with products distributed in various foreign markets including Europe, the US, Japan and the Middle East.

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

“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.

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

In 2016, 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 (TRO) that prevented the company from holding its annual general membership meeting.

Finally, the company was able to proceed with the stockholders’ meeting last year and elected Antonio Pacis as chairman of the board.