VICTORIAS..MILLING COMPANY, INC. V1CMICO Compound. Victorias City,Negros Occidental Tel. No_(034) 399-3380; Fax No. (034) 399-3675 November 15,2012 THE DISCLOSURE DEPARTMENT The Philippine Stock Exchange, Inc. PSE Center, Exchange Road Ortigas Center, Pasig City Attention: MS. JANET A. ENCARNACION Head, Disclosure Department Gentlemen: Attached is a copy of the Manifestation and Motion dated 12 November 2012 filed by Gabionza De Santos and Partners with the Securities and Exchange Commission, in behalf of Victorias Milling Company, Inc. Thank you. Very truly yours, EVj{A. VICENYtO-RODRIGU pliance%lnformation Officer ; ;; " iREPUlBUC OF THE PiI-llUPPilfllES SECUiRnJESA!MtD EXCHANGE COMMISSJON • ' . SEC Bldg." E~SA, Gri?eTl:hjIJs, Mamlaluyonfj City i>f nftS) IN TiHIE MA1TER OF THE PElITION , ~ . , ~~':¥~ FOR DECLARATION OF A. STATE Of . ~: \ l:..L2 : ' \ ~~ ! i!-'- \ 1 ~ \ 1 SUSPENSION OF PAYMB':IT; fOR l'l ," " >'''12 1\\ THE APPROVAL OF A i: :;~! , .' :.u, \\' \ R.E.H.AS. JUT.A.TION PLAN, AND THE . trlS'3~")U L..::.l.!-~ APpm~TlIVlENT Of A MANAGEMENT -~-;, W'" COMMJnEE,. SEC CASE NO.'07-97-5 VICTORJASfit,ILUNG COJVJPANY, INC. Petiiioner: ~----------------~ . , ~ MANifESTATION AtW MOTION PETUlONER VICTORIAS MlLlING COMPANY, INC. r VMC"), in the above-errlitled case, by its undersigned counsel, 10 this Honorable Commission respectfully manifests thaI there was one {'I) Board seat previously reserved lOT the Joinl Venture Partner under the Approved - RehabmtBt~on Plans r AiR?"), particularly the Proposed Alternative I Rehabiliiafion Plan, and the Debt Restructuring Agreement ("DHA") and \formerly occupied by the nominee of Tanduay Holdings, Inc ("THl") as a I conseqeeoceot its IT nfLlslon of the amount of Three Hundred Milljon Pesos (,R300;OOO,OOO.OD) into. VMC !lIhro'l.Jghi a :fivr: (5)·year term loan. This term loan has been 1fllllly paid on 08 April 2008. Consequently, the Board seat reserved for the joint Venture Partner under Par! IV(4) of the Proposed Alternative Reihabilitajjo.l~ Plan has become functus officio. ~ ...:-- :.~. I I Under Part IV(4) of the Proposed Alternative Rehabilitation Plan, the seat allocation for the Board of Directors are as follows : Existing VMC Shareholder 3 seats Secured Creditors 1 seat Creditors with Debt Conversion 6 seats Joint Venture Partner 1 seat Accordingly, with the seat for the Joint Venture Partner being functus officio, it is respectfully moved that this Honorable Commission allow petitioner VMC to have the same seat allocated as an additional seat for Creditors with Debt Conversion, as follows: Existing VMC Shareholder 3 seats Secured Creditors 1 seat Creditors with Debt Conversion 7 seats and, consequently. authorize the amendment of the ARP, and Section 21 of the ORA, as follows: "Section 21 COMPOSITION OF THE BOARD OF DIRECTORS VMC hereby undertakes to the SECURED CREDITORS and UNSECURED CREDITORS that immediately after VMC has secured the approval of the SEC for reduction of capital stock, increase of capital stock, and exemption from registration requirements under the Revised Securities Act for the issuance of shares under the capital infusion feature of the Approved Rehabilitation Plan,VMC shall immediately call a special stockholders' meeting for purposes of electing the new Board of Directors of VMC . which must be composed of eleven (11) members representing the following interests in VMC , to wit - VMC's existing stockho lders - Three (3) Directors Secured Creditors -One (1) Director Unsecured Creditors -Seven (7) Directors 2 While the Secured Loans are outstanding, all parties agree that the Secured Creditors shall be entitled to one (1) Board seat.n The foregoing amendments to the ARP and ORA are necessary to achieve petitioner VMC's desired targets and goals, prevent a leadership vacuum and ensure the rehabilitation of petitioner VMC consistent with Section 4-23 of the Rules of Corporate Recovery which provides that "Section 4-23. Alteration or modification of the Rehabilitation Plan. - An approved Rehabilitation Plan may, on motion, be altered or modified if, in the jUdgment of the Commission, such alteration or modification is necessary to achieve the desired targets or goals set forth therein. No alteration or modification of an approved Rehabilitation Plan shall be allowed if opposed by a majority of any class of creditors unless such opposition is manifestly unreasonable." Verily, the proposed amendment stands to provide ample representation for petitioner VMC's Creditors with Debt Conversion who have the most exposure to the debt obligations of petitioner VMC. The proposed amendment is likewise aligned with petitioner VMC's By-Laws which provides for the election of eleven (11) members of the board of directors. In the meantime, pending approval of the proposed amendment. petitioner VMC will allocate the one (1) Board seat reserved to the Joint Venture Partner to the Creditors with Debt Conversion in the forthcoming Annual Stockholders Meeting on 05 February 2013. 3 ,!. :f.'~. __" '. PRAYER WHEREFORE, it is respectfully moved that this Honorable Commission authorize the amendment to the Part IV(4) of petitioner VMC's Proposed Alternative Rehabilitation Plan and Section 21 of the Debt Restructuring Agreement by allocating the Board seat previously reserved to the Joint Venture Partner as an additional Board seat for Creditors with Debt Conversion. Petitioner further prays for such other measures of relief as this Honorable Commission may deem just and equitable under the premises. Makati City for Mandaluyong City, 12 November 2012. GABIONZA DE SANTOS & PARTNERS Counsel for the Petitioner 20th Floor 139 Corporate Center 139 Valero Street, Salcedo Village, Makati City,Metro Manila By: SANTIAGO T. GABIONZA, JR. Roll of Attorneys No. 31646 P.T.R. No. 3175656,01/02/2012, Makati City l.B.P. Lifetime Member No. 00191, Makati Chapter M.C.L.E. Compliance No. 111 -0012437,04/20/10 4 ALEXA ER C. DY Roll of Attoreys No. 44593 P.T.R. No. 3175659 b1/0212012, Makati City I.B.P. No. Lifetime Mem r No. 05420, Maka!i Chapter M.C.L.E. Complian No. 111-0011826,04113/10 CARMINE ELIZA T. SERRANO Roll of Attorneys No. 50784 P.T.R. No.3175668, 01/0212012, Makati City I.B.P. No. 869598, 01/0412012, Makati Chapter M.C.L.E. Compliance No. 111-0009295,03/08110 VINCENT PA~I~ R. CRUZ Roll of Attorneys ~o. 59794 P.T.R. No.3175666, 01/0212012, Makati City I.B.P. No.869600, 01/0412012, Makati Chapter Admitted to the Bar 04/19/2011 ATTY. LUIS MA. G. URANZA Rehabilitation Receiver VICTORIAS MILLING CO., INC. cia Rm 400-0 Delta BUilding West Avenue, Quezon City THE CLERK SECURITIES AND EXCHANGE COMMISSION SEC Building, EDSA, Greenhills, Mandaluyong City LISTINGS AND DISCLOSURE GROUP PHILIPPINE STOCK EXCHANGE, INC. PSE Center, Exchange Road Ortigas Center, Pasig City AGCAOILI & ASSOCIATES Counsel for Australia & New Zealand Banking Corporation, LTO. Counsel for Banque Nationale De Paris 7TH Floor, Citibank Center Paseo de Roxas, Makati City 5 ",-~ i ·. ... ..,.,. i' BENEDICTO VERZOSA GEALOGY & BURKLEY Counsel for BPI 11th Floor, BPI Building, Ayala Avenue cor. Paseo de Roxas, Makati City ATTY. MARTIN B. BUENVENTURA Counsel far Philippine Commercial Capital, Inc. 118 L P. Leviste si, Salcedo Village, Makati City CAMERON GRANDVILLE ASSET MANAGEMENT clo Ferrier Hodgson Corporate Services Karport Bldg.. 32nd Street Bonifacio Global City Taguig City ONA PAMFILO IMON AGOSTA DURAN LIM & DE JESUS LAW OFFICES Counsel for East West Banking Corporatian 2/F Salustiana D. Ty Tower 104 Paseo de Roxas, Legaspi Village Makati City CVCLAW Counsel for Dao Heng Bank CVCLAW Center 11th Avenue corner 39th Street, Bonifacio Triangle Bonifacio Global City CASTRO & ASSOCIATES Caunsel for Security Bank Castro Law Center 1353 Kalayaan Ave. Candelaria cor. Nicanor Garcia (formerly Reposo) Santiago Village , Makati City CHINA BANKING CORPORATION CSC Building 8745 Paseo de Raxas corner. Villar St., Makati City LIM VIRGILIA ORENCIA & ASSOCIATES Counsel for China Banking Corporation t t" Floor, CBC Building 8745 Paseo de Roxas cor. Villar St., Makati City 6 ATTY. EFREN N. OElA CRUZ Counsel for Bandila Construction & Development Corporation Rm. 206, BPI Office Condominium Plaza Cervantes, Binondo, Manila ATTY. GREGORIO S. Oliilo Counsel for United Coconut Planters Life Assurance Corporetlon 6744 Ayala Avenue, Makali City GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) Legal Services Group GSIS Headquarters, Financial Cenler Roxas Blvd., Pasay City ENCANTO GASPARIL CATAPANG & GUZMAN Counsel for United Coconut Planters Bank (UCPB) 9"' Floor, UCPB Building. Makati Ave ., Makati City ATTY. ALBERT B. GUEVARA, JR Counsel for AITOR DE CORTABITARTE GUEVARA LAW OFFICE Suite 605 Catlleya Condominium 235 Salcedo St., Legaspi Village, Makati City ISON & NAVARRO Counsel for Penta Capital 10lh Floor, ACT Tower 135 Sen. Gil J. Puyat Avenue, Salcedo Village, Makali City NATlONAL FOOD AUTHORITY NFA Building, -101 E. Rodriguez Sf. Quezon City LAND BANK OF THE PHILIPPINES Land Bank Bldg., IV, 319 Sen. Gil PuyatAve., Extn. Makali City ATTY. ARNEL L. LAPORE DiAl & l APORE Counsel for Negros Merchants Enterprises, Inc. and Edell Commercial Room 8 , 41h Floor, Villa Angela Metro Plaza. Araneta 51., Bacolod City 7 • < i" . ATTY. JOSE GERMAN M. lICUP Counsel for Hangkang and Shanghai Banking Corporation 4'h Floor, Royal Match Building 6780 Ayala Avenue, Makati City DEUTSCHE BANK 20th Floor, Tower I, Ayala Avenue, Makati City ATTYS. AMADOR M. MONTEIRO AND ERNESTO G. GAstS Counsel for Creditor Social Security System SSS Building , East Avenue Quezon City OFFICE OF THE LEGAL COUNSEL 10th Floor, DBP Bldg.. Sen. Gil J. Puyat Ave., Makati City OCAMPO, QUIROZ, PESAYCO & ASSOCIATES Counsel for Allied Banking Corporeiion 2"d Floor. Allied Bank Center 6754 Ayala Avenue, Makati City PHILIPPINE NATIONAL BANI( Financial Center, Roxas Blvd., Pasay City PICAZO BUYCO TAN FIDER & SANTOS Counsel for Asia Bank Corporation 181/'. 19th Floors Liberty Center 104 HV Dela Costa Street Salcedo Village, Makati City PLATON MARTINEZ FLORES SAN PEDRO & LEANO Counsel for Citibanl< 6 1h Floor, Tuscan Building 114 Herrera SI., Legaspi Village, Makati City PONCE ENRILE REYES & MANALASTAS Counsel for Manufacturer's Life Insurance Co.