PH Resorts Eyes Turnaround From Negative Equity This Year

PH Resorts Group Holdings Inc. of Davao-based businessman Dennis Uy is looking to turn its negative equity position around later this year through the conversion of advances for future stock subscription into equity.

- Richmond Mercurio

To resolve its negative equity position, PH Resorts said in a stock exchange filing that it plans to convert deposits and advances for future stock subscription to common stock by its parent entity, Udenna Corp.

The company is targeting additional equity through the conversion of approximately P4.09 billion by the end of the fourth quarter.

As of end-March, the company said it has advances for future stock subscription of P4.21 billion classified as liability in its consolidated statement of financial position.

PH Resorts is working toward an increase of its authorized capital stock to P15 billion from P8 billion, as previously approved by its board of directors and shareholders.

The application for increase will be presented for reapproval by the stockholders during the upcoming annual stockholders' meeting of the company this week as the Securities and Exchange Commission requires that the application for increase be filed within six months from stockholders' approval.