The Uniwide group of companies has lambasted an order from the Securities and Exchange Commission that called for its dissolution and liquidation, claiming that it had “substantially” pared down debt.
In a disclosure to the Philippine Stock Exchange on Monday, Uniwide—once an operator of a fast-expanding grocery chain—said still pending with the Court of Appeals was its “mandamus” case against the SEC.
Under existing rules of court, a writ of mandamus commands a tribunal, corporation, board, officer or person deemed to have unlawfully neglected the performance of an act of duty to act or decide.
This is the recourse when there is no other plain, speedy and adequate remedy in the ordinary course of law.
Uniwide president Jimmy Gow claimed in the disclosure that the group’s obligations had been substantially paid in 2010 and the obligations due to the creditors had been substantially reduced.
As early as December 2012, he said urgent motions were filed to withdraw from the SEC the petition for rehabilitation as Uniwide intended to negotiate with its creditors.
Gow said this petition to withdraw was also filed because Uniwide believed “it is on the road to recover its financial standing.”
Since the motion was not acted upon, a “mandamus” case was filed with the Court of Appeals where it is pending resolution, Gow said.
“It is therefore unfair that the corporation be dissolved and liquidated,” he said.
The SEC recently ordered the dissolution and liquidation of assets of the Uniwide group on contention that the once high-flying retailer was beyond rescue.
In the ruling, the SEC order said it could not accept the group’s allegation that remaining debt had gone down to P1.4 billion.
The corporate watchdog said the group had been “insolvent” since 2003, which meant that the company had more liabilities than assets. Likewise cited by the SEC was the group’s high debt-to-asset ratio exceeding 1 since 2003 and which has swelled to 4.51 in 2009.
A debt ratio greater than 1 means the company has negative net worth and is technically bankrupt, the en banc said. Doris C. Dumlao