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Rehab case of Wellex units ended by Valenzuela RTC.

GATCHALIAN-CONTROLLED Wellex Industries Inc. said the rehabilitation case of its units was already terminated due to the payment of the principal borrower to the Philippine National Bank.

Thus, the company will continue its agreements with a property developer.

'In this regard, the properties of its subsidiaries, marked with encumbrances due to the existence of the rehabilitation court case, will now be free from any lien and encumbrances,' the company said.

It said the termination of the rehabilitation court case allowed the units of Wellex, a former plastic manufacturer, to continue with its memorandum of agreement (MOA) with Avida Land Inc., a unit of Ayala Land Inc.

'It must be noted the joint-venture agreement with Avida Land has not been rescinded. In fact, the termination of the rehabilitation case and the subsequent lifting of the annotations on the titles covering the Plastic City properties are part of the responsibilities of the company under the MOA with Avida Land,' the company said.

It said the annotations pertaining to the encumbrance could be lifted, paving the way for the property development to take place.

'It is, however, too early to make any comment on the financial impact of the Valenzuela project at this point,' it said.

Last week its unit Plastic City Industrial Corp. said its rehabilitation case with the Valenzuela Regional Trial Court (RTC) Branch 75 was closed and terminated due to the payment of debts.

The properties of Inland Container Corp., Pacific Plastic Corp., and Kennex Container Corp. were used as collateral to secure a third-party loan. Plastic City, the firm, has long ceased its operations, but its units have leased out its warehouse facilities and other buildings.

In 2012 Wellex signed an agreement with Ayala Land to develop 16.7 hectares of land of its 50-hectare Plastic City in Canumay, Valenzuela.

The development will include an office, residential and commercial components.

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Publication:Business Mirror (Makati City, Philippines)
Date:Jul 5, 2018
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