DFNN Inc, led by businessman Raymond Garcia, has received approval from the Securities and Exchange Commission (SEC) for its equity restructuring plan.
The restructuring is aimed at improving the company’s financial condition by reducing its deficit in the equity account as of December 31, 2021, by offsetting it against additional paid-in capital.
The proposed equity restructuring will wipe out DFNN’s deficit of P424.25 million as of December 31, 2021, against the additional paid-in capital of P583.04 million.
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However, the remaining additional paid-in capital of P158.78 million cannot be used for future losses without prior approval from the SEC.
DFNN has confirmed that the equity restructuring will not involve a change in the par value or the infusion of any additional paid-in capital into the company.
Additionally, the restructuring will not result in any changes in the number of issued, outstanding, and listed shares of the company.