Listed sugar firm Victorias Milling Co. Inc. wants to convert a portion of its debt into equity as part of its revised rehabilitation plan, ABS-CBN online reported.

Omar Mier, VMC chairman, said the move will significantly lower the financially troubled company's debt level, which currently stands at P6.4 billion.

The company, however, has yet to review how much of the P6.4 billion in bank debts will be converted into shares, the ABS-CBN report said.

"This is the only way for Victorias Milling to survive especially when tariff rates on imported sugar is finally removed. Creditors need to convert part of the debts into equity," Mier told reporters at the sidelines of the company's stockholders' meeting yesterday.

VMC has yet to get approval from shareholders and creditors, which include Lucio Tan-owned Philippine National Bank and Allied Banking Corp. Mier, however, hoped to finalize the company's plans within the year, the report said.

Meanwhile, Mier hoped that that the local bourse would lift the trading suspension on VMC’s shares. He said the company has been posting profits for the past years, which means that it has enough cash to pay their debts, the report added.

But even with the company's improved performance, VMC Milling still needs to generate retained earnings so the trading suspension would be lifted.

Trading of shares of Victorias Milling has been suspended since 1997 as the company failed to address rising costs and falling sugar prices, the report said.*

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