NEGROS Navigation (Nenaco) has been ordered to pay its debts to GE SeaCo as these are not covered by the rehabilitation program secured by the firm two years ago.
Judge Aida E. Layug of Branch 8 of the Manila Trial Court directed Nenaco to pay its current debts-or those payable accounts that has remained unpaid for 30 days.
No amount was specified by the court order, but according to court data, Nenaco has unpaid accounts of $18,835.60 for July alone for the rental of GE SeaCo’s container vans. The said amount was due last August 31.
Court-appointed rehabilitation receiver Monico Jacob said he would not file an opposition to the decision, and instead would recommend payment. To date, Jacob still has to file his recommendation.
"Upon the receipt of the recommendation from the corporate receiver the court will make proper order," Judge Layug said in her order.
For the first quarter of the year, Nenaco, a unit of Metro Pacific Corp. reported a loss of P29.2 million, narrower than its reported P77 million losses last year. The company still has to file its second-quarter financial report to the courts.
It attributed the bottom line improvement to less operating costs and expenses as the company only operated five to six vessels during the period compared to nine in 2005.
The company is under a 10-year rehabilitation plan for its total outstanding obligations estimated at P2.4 billion, including P1 billion in bank loans.
Its creditors include the Export-Import Bank, Bank of Commerce, Equitable-PCI Bank, Prudential Bank and Trust Co., and Metropolitan Bank and Trust Co.
Another P1 billion is owed to trade suppliers and lessors of equipment and property, and P400 million in unpaid taxes to the Bureau of Internal Revenue.