Point of view
We analyzed this case based on the point of view of the chairman of the board and chief executive officer of PJI that the privatization of the company from the standpoint of the government economic recovery should enjoy priority over the recovery of sequestered shares as ill-gotten wealth. Time Context
As of March 31, 1988, the capital deficiency has been reduced to 92.7 million resulting from profitable operations and with a much improved liquidity position despite the heavy interest burden on the DBP loans. Case analysis
The privatation of PJI is one of the highest priorities or it will mean a substantial addition to the government and a further boost to the economic recovery program of the country indeed, it is more urgent and deserves greater priority and attention then the recovery of the alleged ill-gotten wealth , who received directly and indirectly cash funds from PJI and the prosecution of the former DBP governors who approved the questionable PJI loans to the damage and prejudice of DBP and the National Government, all in violation of the anti-graft and corrupt practices act. Objectives
-To recover the DBP exposure resulting from the capital deficiency and the huge negative book value. -to achieve the privatization of Philippine Journalists, Inc. Statement of the Problem
What will the National Government do to recover the DBP loan exposure resulting from the capital deficiency and the huge negative book value. Action Plan
-PCG will return its sequestration powers over PJI and designate representatives of the buyer as members of a new PJI board of directors. -the new buyer will exercise control and management of PJI through the new board of direcors under probably an amnded articles of inc. And/or by-laws -the new PJI board will be under the majority control of the buyer and will assume responsibility for carrying out he debt-equity conversation scheme to make the PJI operation feasible and viable.
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