Cebu Pacific board approves P16B deficit wipe
Cebu Pacific [CEB 29.25, up 0.5%; 91% avgVol] [link] was halted for one hour yesterday after the discount airline disclosed that its board of directors had approved a plan to eliminate its P16.2 billion retained earnings deficit using its additional paid-in capital (APIC). The move would leave CEB with approximately P4.4 billion in remaining APIC. Shares of CEB flash-crashed around 2.5% just 15 minutes before the disclosure hit the EDGE servers and before the shares were halted. Shares had recovered somewhat just before the halt and even ticked slightly higher once the halt was lifted at 1:33 PM to see shares close up 0.5% on huge end-of-day buying interest.
