Victorias Milling Co (VMC) future looks uncertain after the Securities
and Exchange Commission (SEC) revealed that it is considering ordering the liquidation
of the troubled company over the managements delayed completion of a rehabilitations
case that is already four years old.

SEC has offered the company an ultimatum designed to resolve the arguments
over an alternative rehabilitation plan (ARP) proposed by VMC’s SEC-appointed
management committee (mancom) and the company’s management led by Manuel Manalac.
Manalac has even submitted his resignation from VMC management following the
difficulties in compromise.

One of the contentious points of the ARP revolves around the mancom suggestion
of a cash infusion of P300m and the conversion of over P3.9bn debt into equity.
Countering this plan, approved by the SEC earlier this year, the Manalac group
believes a P400m capital infusion is necessary, together with the addition of
an extra P500m to the debt-to-equity scheme.

Chairperson of the SEC, Lilia R. Bautista, said last Friday that the two groups
have until the end of March to resolve their differences. She said at a press
briefing: "We have given the mancom and the management three options…they
can compromise on the exact rehabilitation strategy to be implemented or the
mancom can bring back (Manuel) Manalac into the committee, or if all else fails,
VMC could face liquidation."

Bautista added: "The only way for [Manalac] to regain control of VMC is
to agree to rehabilitation. What he wants – to go back to suspension of payment
without rehabilitation – is impossible…without rehabilitation, the company
will last only two year."