The liquidation threat that arrived yesterday from the Securities and Exchange Commission (SEC) has prompted the creditors of the Victorias Milling Co (VMC) to insist that the alternative rehabilitation plan is immediately implemented by the corporate regulator.

Owners of the struggling sugar mill have been debating the draft plan with banks for some time, but have failed to reach a compromise deal.

Gerardo B. Anonas, chairman of the VMC management committee designed to oversee rehabilitation, commented that liquidation is "not a possibility at this point because there is an existing approved rehabilitation plan. Under this plan, the creditor banks will soon own 70% of VMC's equity so they will see to it that liquidation will be avoided."

To read about the SEC threat, click here.