ALLIANCE Select Foods International Inc. is planning an equity restructuring that aims to wipe out about $21.3 million (approximately P1.33 billion) in accumulated deficit while paving the way for a P660-million capital infusion from parent company Strongoak Inc.
The board approved the proposed restructuring at a special meeting on Sept. 2, subject to stockholder and regulatory approvals, Alliance Select said in a disclosure on Thursday.
The restructuring will involve cutting the par value of the company’s common shares to P0.10 from P0.50 and applying about $21.4 million in additional paid-in capital against its accumulated deficit.
The company said the move was intended to strengthen its financial position and capital structure while giving it additional capacity to raise equity in the future.
At the same time, Strongoak plans to subscribe to 6 billion new Alliance Select shares at P0.11 each for a total of P660 million.
The company said the additional funds would allow it to pare down existing debt, reduce leverage and interest costs, finance medium-term growth and fund selected capital expenditures.
Following the proposed subscription, Alliance Select’s issued and outstanding shares would rise to about 8.5 billion from 2.5 billion currently.
The restructuring will first reduce the company’s authorized capital stock to P300 million from P1.5 billion, with the par value lowered to P0.10 from P0.50 while retaining 3 billion authorized common shares.
Alliance Select will then seek to raise its authorized capital stock back to P1.5 billion, but with 15 billion common shares at a lower P0.10 par value.
The company said the par-value reduction would result in about $21.4 million in additional paid-in capital, which would be applied against the accumulated deficit, subject to accounting and regulatory requirements.
The disclosure put the deficit to be eliminated at $21.289 million.
After Strongoak’s subscription, about 6.5 billion authorized shares would remain available for future issuance, Alliance Select said.
The company will seek the listing of the subscription shares with the Philippine Stock Exchange and other relevant regulators.
Alliance Select will also hold a special stockholders’ meeting to seek approval for the proposed restructuring and amendments to its Articles of Incorporation. The date has yet to be finalized.
The company said the restructuring was based on financial information as of June 30, 2026, while its financial statements remained under audit and were expected to be completed on or about Sept. 22.
Alliance Select on Thursday saw its shares jump by P0.02, or 6.90 percent, to close at P0.31 each.
