Uniwide asks court for more time to contest dissolution, liquidation

The Uniwide Group of Companies has asked the Court of Appeals for more time for it to file a petition for review in connection with its legal battle against the Securities and Exchange Commission (SEC) order to dissolve and liquidate the firm.

In a motion, Uniwide said SEC "erred in its appreciation of the facts" when it issued the contested May 30 order.

Uniwide said it received a copy of the SEC order on June 6, meaning it has 15 days or until June 21 within which to file a petition for review with the CA.

"Unfortunately, petitioners will not be able to file their petition for review on time due to undersigned lawyers' very heavy workload," Uniwide said.

The retail firm also said its lawyers still have to consult with various stakeholders, review "voluminous records of this case," and finalize a petition for review. It requested an additional 15 days or until July 16 within which to file a petition for review.

In a decision, SEC denied the Uniwide group's appeal to reconsider the special hearing panel’s decision to terminate the proposed rehabilitation of Uniwide Group of Companies.

"The dissolution of all companies in the group, namely Uniwide Sales Inc., Uniwide Holdings Inc., Naic Resources and Development Corp., Uniwide Sales Realty and Resources Corp., First Paragon Corp. and Uniwide Sales Warehouse Club Inc. is hereby ordered pursuant to Sec 6-1 of the SEC Rules of Procedures on Corporate Recovery, after which, liquidation shall follow," the SEC said.

In 2009, the SEC's special hearing panel decided to terminate the Uniwide Group's rehabilitation plan because of its failure to comply with the terms of the plan as approved in 2002.

The special hearing panel also concluded that the Uniwide group has changed from being "solvent but distressed" to "technically insolvent."

Under the rehabilitation plan, Uniwide planned to settle its debts with secured creditors through dacion en pago, a special mode of payment where the debtor offers another thing to the creditor as equivalent of payment of an outstanding obligation.

The supermarket chain was also expected to generate cash from operations of existing stores.

SEC, however, said the planned dacion en pago with Allied Bank, Philippine National Bank, LNC SPV-AMC Corp. and other secured creditors failed because of refusal of some creditors to comply with the terms of the rehabilitation plan.

The supermarket chain also allegedly failed to increase its sales because of closure of Uniwide stores, the lack of supplier support for the company’s supermarket operations, and unprogrammed operating expenses.

Uniwide has branded SEC's order as unfair. — Mark Merueñas/KBK, GMA News