That line alone has insiders uneasy. But the figures underneath it are even more telling.
Based on financial statements filed with regulators a couple of months ago, the firm booked another multi-billion-peso net loss for 2024, extending a streak of deep red ink. Accumulated deficits are now approaching P28 billion, while its balance sheet shows a capital deficiency north of P40 billion. Current liabilities tower over current assets, suggesting the company is relying heavily on short-term fixes just to stay afloat.
Management efforts
No doubt, management is trying to stabilize its flight. The notes show efforts to rationalize operations, drop unprofitable segments, renegotiate long-term contracts, and push for efficiencies across the board. These moves help on paper, but insiders say they’re nowhere near enough to offset the scale of the problem. Revenue remains volatile. Expenses continue to climb. And external conditions haven’t been kind.
Cash flow paints an even tougher picture. Operations consumed over P7.7 billion in cash last year, another sign that the business is burning through liquidity faster than it can generate it. Debt continues to grow, and the company is renegotiating terms wherever it can — including extending maturities and restructuring financial obligations.
Creditor forbearance
What has really set off alarms is the company’s dependence on reworked contracts and lender patience. Some obligations are approaching key deadlines, and talks to stretch them further are ongoing. But as one source put it, “You can only move the goalposts so many times.”
That’s why industry observers — from analysts to dealmakers — have begun floating the same conclusion: this red firm may need a white knight. Whether that means a strategic partner, a deep-pocketed investor, or a full recapitalization is unclear. What’s certain is that the firm cannot rely on internal measures alone.
Tough industry
Larger competitors are expanding and eating into its market share from the top, and smaller ones are cropping up to take away customers from the bottom. Markets are recovering unevenly. And this company, once an aggressive and flashy player in this high-flying industry, is now trying to buy time.
People close to the situation say the board both here and overseas is weighing options quietly but urgently. The consensus? Forget about any talk of a takeoff. Without fresh capital, the company may be in for a hard landing.
Senior Reporter
