Court approves dacion of Vitarich properties in Bulacan, Davao
The court has approved the transfer of Vitarich Corp.’s noncore assets worth P373.2 million to Kormasinc as contained in its approved rehabilitation plan.
In a disclosure to the stock exchange, Vitarich said the rehabilitation court today approved its memorandum of agreement between with Kormasinc for the dacion of its properties in Bulacan and Davao.
Vitarich is hoping for a successful exit from corporate rehabilitation but only the memorandum of agreement was approved in the hearing today.
A new rehabilitation judge was appointed to the case and the motion for a successful exit will require a resolution from the new judge who still has to go through the “voluminous records of the case.”
Aside from the dacion, Vitarich will also be providing Kormasinc with post-dated cheques worth P34.5 million. In turn, Kormasinc assigned back to Vitarich the security interest in the mortgage trust indenture.
Vitarich was established in the 1950s by the Sarmientos of Bulacan. It was first named Philippine American Milling Co. It has since fully integrated its operations. It sells poultry products such as live and dressed chicken, animal and aqua feeds, among others.
As of the end of 2015, Vitarich’s assets totalled P2.4 billion.