(Update) PSE suspends Vitarich trading

The Philippine Stock Exchange (PSE) suspended trading of Vitarich Corp. on Monday after the company filed a petition for corporate rehabilitation before a local court. "Pursuant to the implementing guidelines for companies under corporate rehabilitation, a trading suspension shall be implemented on the company's shares effective today, September 18, 2006," the PSE said in a circular for brokers. Vitarich closed at P0.22 on Friday. The exchange said the firm, which is involved in the production and wholesale of poultry and animal feeds, filed the petition before the Regional Trial Court of Malolos, Bulacan on Friday. "The exchange shall inform the trading participants and the investing public of further develoments on the matter," the PSE said. In its latest financial report, Vitarich said it had a net loss of P90.41 million in the first half of the year. It experienced a net loss of P104.55 million in the same period last year. Vitarich has filed the petition for rehabilitation to raise fresh capital and to return to profitability within 12 months, a newspaper reported on Monday. Vitarich, which is currently restructuring its debts, wants a rehabilitation program that will allow it to utilize its revenues to further grow its feeds business instead of merely allocating earnings to debt and interest payments, the Philippine Star said. "We need our revenues to sustain growth. Vitarich remains very solvent, yet we are being hampered by the restructuring program and we want to utilize our earnings to provide our customers with better products," company president Rogelio Sarmiento was quoted as saying by the newspaper. Vitarich was a leading poultry and feeds producer until it suffered when the Asian economic crisis broke out in late 1990s which bloated its debts. - With additional report from Patricia de Leon, GMANews.TV