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