[CTRL] martial law

[Troy Griggs]

Title: martial law

martial law era.
  


When Martial Law was declared in 1972, the Lopezes were forced to completely give up ownership and control of MSC, and a new group identified with the Martial Law regime took over the company through the Meralco Foundation, Inc. (MFI).  The Lopezes were kept out of MSC/Meralco until after the EDSA revolution.


In October 1977, MFI acquired all of MSCıs holdings in Meralco on installment payable up to 1991. Under the Stock Purchase Agreement, the unpaid Meralco shares would revert automatically to MSC upon default of MFI. Such a default occurred in 1985, resulting in the partial reversion of the ownership of Meralco to MSC.


In the meantime, the new Martial Law regime owners of MSC adopted a new corporate name, First Philippine Holdings Corporation (FPHC), which gave it a completely new identity separate from Meralco. Without Meralco, FPHC was then forced to venture into other businesses beyond its traditional core competence.


The ensuing rapid growth that resulted from an ill-timed expansion from 1979 to 1982 brought about the near downfall of FPHC. The severe economic difficulties experienced by the country from 1983 to 1986 resulted in heavy financial losses for FPHC, forcing the company to sell off some of its prized assets, notably PCIBank and PPC, to meet maturing obligations.


- Corporate Brochure, p. 5