On December 20, 2012, APC disclosed that its board approved a reduction in par.  On January 11, 2013, the rationale of the par value reduction from P1 to P.35 was in order to reduce substantially the capital deficit. 
How could par value reduction reduce deficit?
Par value is a promise from the corporation that no shares shall be issued below the indicated amount. In the case of APC, APC initially indicated a par value of P1.
If you purchase directly 1 share of stock in APC which means you invested P1 to APC and they later say that your claim will only be P.35, the difference of P.65 is for APC to keep which they can use to apply to their deficit.
The process above is called quasi-reorganization. The word “quasi” is Latin for the word “almost” thus quasi-reorganization means in simple English “almost a reorganization.” Quasi-reorganization is simply an accounting method of reducing/eliminating deficit. Management prefers to reduce/eliminate deficit in order to:
- Present a balance sheet without deficit is for potential investors.
- Declare dividends (a corporation in deficit cannot declare dividends).
- Shorten the time that it will take the company to present surplus.
- Board approval of reduction in par value, http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-9191_APC.pdf
- Additional information re: Board approval of reduction in par value; Trading halt, http://www.pse.com.ph/resource/disclosures/2013/pdf/dc2013-0375_APC.pdf
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