Posted on May 18, 2012 07:53:54 PM [
BusinessWorld Online ]
BY FRANZ JONATHAN G. DE LA FUENTE,
Reporter
The Philippine Stock Exchange (PSE)
wielded its authority over two firms in line with reportorial requirements on
Friday, ordering a trading suspension on shares of Eton Properties Philippines,
Inc. for alleged non-compliance while at the same time lifting a similar ban on
Victorias Milling Co., Inc.
The trading of Eton shares was halted
beginning 9 a.m. following the developer’s alleged failure to submit its annual
report for 2011 using the Securities and Exchange Commission (SEC) Form 17-A,
which was due last April 16, a circular read.
Sought for comment, Eton Properties
Director Wilson T. Young said in a text message: “The delay in the [submission
of the] report is due to the non-completion of certain audit requirements to
comply with updated accounting regulations. Eton...will definitely comply with
the reportorial requirements to facilitate the lifting of the suspension.”
PSE’s revised disclosure rules
provides that firms that fail to comply with the stock exchange’s reportorial
rules shall be automatically suspended for up to three months, after which
procedures for delisting will be started.
In a separate circular, the PSE
allowed sugar manufacturer Victorias Milling to resume trading of its share on
the local bourse on May 21, 9 a.m., ending a 15-year halt.
“Please be advised that [Victorias
Milling] has complied with the structured reportorial requirements of the
exchange, and has paid the corresponding penalties imposed for delayed and
non-submission of certain structured reports for the years ended 1999 to 2002,”
the PSE said.
Earlier this year, the SEC cleared
Victorias Milling of allegations that it misrepresented material information
contained in its official records, paving the way for its shares’ trading
resumption after being suspended by the PSE in 1997.
Victorias Milling faced financial
difficulties in the mid-1990s due to its failure to contain rising overhead
costs amid a drop in sugar prices and increasing competition from new and
expanded sugar mills and refineries, prompting the firm to enter rehabilitation
and debt restructuring in 2000.
Recently, the company has slowly been
gaining ground in the payment of its obligations to various banks.
As of mid-October last year, Victorias
Milling has already paid bank creditors around P2.7 billion by way of interest
and P1.45 billion on its restructured loan, earlier reports said.
Shares of Eton Properties were last
traded on May 16 at P3.53 apiece, while Victorias Milling shares were last
traded on Oct. 8, 1997 at 29 centavos each.
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