Typhoon Pepang Case Study

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Point of View For the purpose of this study, the researchers have opted to take the point of view of the working committee formed by the creditors of Victorias Milling Company, Inc. (VICMICO). They are responsible for analyzing the company’s current condition, specifically, the magnitude of its debts and the possible infusion of funds by stockholders. They coordinate with the firm’s management, other creditors, and auditors in order to address the pressing issues of the company. Case Context The Environment In late October 1995, typhoon Pepang hit the country, especially, Leyte, Cebu Negros, and Panay. This typhoon is listed as one of the top eleven (11) worst typhoons in the Philippines because of the casualties it had caused and its damages to property, especially in the agricultural sector because of severe flooding. Moreover, in the years 1993 and 1994, the Philippines …show more content…

358 was issued in order to fill up the sugar quota for the crop year 19995-1996. With this, the majority of domestically produced sugar were exported to the United States whereas, local demand was met mostly from the world market of raw cane sugar. Moreover, the memorandum grants the importation of raw cane sugar tariff-free privileges wherein the importers are able to price the product considerably cheaper than the domestically produced sugar. Moreover, the regulations during this period, penalized producers who invested in technology which increased the sugar content per sugar cane or increased the rate of extraction of sugar per cane. As a result, investment in technology in sugar production was not that appealing to producers. Moreover, the implementation of the Comprehensive Agrarian Reform Program (CARP), which is the division and reallocation of lands to smallholders, presented uncertainties for the future of the sugar industry, which is heavily invested in hectares of land, and made it undesirable to invest in the sugar

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