PT&T eyes stock trading return after debt-to-equity conversion

Philippine Telegraph and Telephone Corp. (PT&T) is eyeing to resume trading on the Philippine Stock Exchange nearly 20 years after its suspension, after it wiped out over P9 billion in capital deficiency following a debt-to-equity conversion.

PT&T said that it is “actively pursuing the resumption of its trading on the PSE.”

PT&T shares have been on suspension since Dec. 13, 2004 due to issues on compliance with disclosure and reportorial requirements.

As it eyes to return to the trading table, the telco said that while the PSE has acknowledged that it no longer faces capital deficiency, there are still pending items to address within PT&T’s Rehabilitation Plan.

“While we cannot provide a specific date at this time, we are diligently fulfilling the requirements outlined in our Rehabilitation Plan. By adhering to the requirements set forth in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange. Our immediate goal is to secure the necessary approvals from the PSE to resume trading as soon as possible,” said James Velasquez, president and CEO of PT&T.

The telco’s announcement to resume trading came after a successful debt-to-equity conversion —a crucial component in its ongoing implementation of key rehabilitation orders.

PT&T said that, in November 2023, the Securities and Exchange Commission (SEC) greenlit the telco’s increase in its authorized capital stock from P3.8 billion to P12.6 billion. 

“This increase facilitated the P8.9 billion debt-to-equity conversion, paving the way for the issuance of preferred shares (Series A, B, and C) as outlined in the Rehabilitation Plan,” the telco said.

“Furthermore, it enabled the partial settlement of statutory obligations, salaries, wages, and other employee benefits from the escrow accounts as of December 2023,” it said.

PT&T said that the debt-to-equity conversion enabled the company to eliminate a total of P9.3 billion capital deficiency, resulting in a substantial decrease in its liabilities and strengthening its capital position, achieving an impressive turnaround of over 100% year-on-year.

Under a court-approved 14-year rehabilitation plan, PT&T would settle P8.8 billion of debts by paying creditors with redeemable serial preferred shares of the company. 

PT&T also reported a 5% year-on-year growth in gross revenue and an over two-folds or 155% increase in bottom line in 2023.

“We take pride in eliminating our capital deficiency through a successful debt-to-equity conversion and significantly strengthening our capital position,” said Velasquez.

"With our fundraising initiative, we anticipate a substantial enhancement of our capacity to deliver reliable, streamlined, and sustainable broadband and IT services. This enhancement will not only benefit the CALABARZON region but also extend nationwide over the next few years, meeting the growing demand for connectivity in the country,” he said.—AOL, GMA Integrated News