AFTER WE EXPOSED another grand scheme involving a presidential kin, and a leading construction brand, the Philippine Stocks Exchange found itself in a dilemma.
For one, colliding with the so-called powers that be, isn’t good for the business.
But PSE will have to do what they are supposed to do. It’s a damn if you do, damn if you don’t situation to save their reputation — and the Philippine stocks trading system as well.
Let’s cut the rhetorics. While EEI Corporation is as big as it can be, its financial statement says otherwise. It’s actially on the verge of extinction.
“It has been established that much of the flood control insertions in the national budget took place during his watch as Speaker of the House of Representatives. A similar shenanigan must be implied in the EEI situation.”
COMING TO THE RESCUE
At a time when EEI was incurring heavy losses and drowning in debt came a knight in shining armor by the name of Martin Romualdez.
Through his company RYM Business Management, Romualdez acquired 20% of EEI’s common shares amounting to P1.2 billion.
And then just months after, Romualdez demanded a buy-out of his EEI stocks for the amount of P3.75 billion.
How was it possible that a company wallowing in debts was able to accommodate Romualdez’s demand for a P3.75 billion payment for the buy-out of his P1.2 billion investment?
In the first place, granting a negative financial standing of EEI prior to Romualdez’s purchase of 20% of its common shares, how was it possible for EEI to pay P3.75 billion as Romualdez demanded when EEI liquidity at the time was only P1.2 billion, what Romualdez invested for 20% of EEI’s common shares.
A BAILOUT SCHEME
It has been established that much of the flood control insertions in the national budget took place during his watch as Speaker of the House of Representatives. A similar shenanigan must be implied in the EEI situation.
Some observant quarters, particularly serious analysts of Philippines Stock Exchange, discern a scenario whereby having learned of the EEI travail, then Speaker Romualdez approached the Yuchengco patriarch and offered a bailout scheme.
With Romualdez facilitating everything, funds could be raised, say P3.75 billion, P1.2 billion to represent RYM investment in EEI by which to qualify him to demand a buy out.
To cut the long story short, Romualdez got what he wanted. P3.75 billion for stocks he bought at P1.2 billion — in less than a year.
This alone should be more than enough for PSE to move fast if only to prevent stocks trading from an imminent collapse.