This the latest update on the business plan of Prime Media Holdings, Inc. (PMHI) to bring its stockholders' equity from negative to positive.
Please note that the company's ability to raise new capital by pursuing discussions with third party investors highly depend on completion of the clean-up of the books and transfer of the assets assigned to PDIC and BSP. The transfer of the assets to PDIC and BSP requires more time than anticipated due to causes beyond the company's control. Processing of documents in government offices such as the BIR, Assessor's office and Registry of Deeds has taken longer than projected. Barring any unforeseen events or developments, the company hopes to to accomplish the updated plan by first quarter of 2013.
PRIME MEDIA HOLDINGS, INC Update on Plan to bring about a Positive Stockholders' Equity
| Activities and Plans | Previous target date of completion | Status/activities undertaken | Revised timetable | | Clean-up of Books | June 30, 2010 | - Sold certain assets to reduce interest bearing debt
- Collected certain long outstanding receivables
- Obtained property appraisals for certain assets preparatory to disposal
| December 31, 2012 | | Registration of Assets for transfer to PDIC/BSP | June 30, 2010 | - Transferred over P600 million worth of properties to PDIC/BSP
- Transfer of certain assets delayed due to foreclosure activities and longer processing time in government offices (i.e. BIR, Assessors' offices, Registry of Deeds)
| December 31, 2012 | | Conversion of Liability to affiliated companies | January 2011 | - Obtained additional advances from an affiliated company also to be converted to equity
- Conversion targeted to be done upon completion of transfer of assets to PDIC for one time processing and costs considerations
| December 2012 | | Discussions with interested parties to acquire listed shares of PMH, subject to clean-up | Last quarter 2009 up to 2011 | - Tentative discussions conducted but no agreement reach due to unfinished clean-up of books and transfer of assets to PDIC
| As offers are received from interested parties up to 1st quarter of 2013 |
Prime Media Holdings, Inc. continues to pursue its plan of cleaning up its books and the transfer of assets to PDIC/BSP as new investor's interest will only follow upon successful completion of these activities. Prior to a possible equity infusion from new investors, above activities are estimated to have the following impact on the capital deficiency: - Capital Deficiency as of March 31, 2012 - PhP 853 million
- Clean-up of books -
PhP 133 million
- Conversion of intercompany advances to equity -
PhP 631 million
- Net Capital Deficiency -
PhP 89 million
Net Capital Deficiency will be reduced to a more manageable level of only P89 million which would make it attractive to possible investors to acquire the listed shares and infuse fresh capital to reverse the negative equity position. - https://www.affordablecebu.com/
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"Prime Media Holdings, Inc. Business Plan Update" was written by Mary under the Business category. It has been read 2137 times and generated 0 comments. The article was created on 28 June 2012 and updated on 28 June 2012.
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