The manufacturing unit of listed Prime Orion Philippines Inc. is seeking to undergo a corporate rehabilitation program to revive its business.

In a disclosure to the Philippine Stock Exchange, Prime Orion said its indirect subsidiary Lepanto Ceramics Inc. filed last week a petition for rehabilitation with the Regional Trial Court of Calamba pursuant to the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010.”

The rehabilitation aims to arrest the Laguna-based firm’s continuing losses for the past several years, ensure the continuing delivery of suppliers, give the company the change to rebuild its business by using its cash flow directly for operations and service obligations with creditors.

Lepanto Ceramics’ fiscal year ending June came up with a net loss of P51 million, or two percenthigher than the P50 million in 2010, excluding gains on settlement of debt. Net sales dropped by 7 percent as sales volume fell, cushioned by the increase in prices.

While the focus will remain on pushing the higher margin rustic products, Lepanto Ceramics and its exclusive marketing partner Orion Maxis Inc., another subsidiary of Prime Orion, will have to run a tighter production and sales operations.

“The focus will now be on more efficient production runs (reduced wastages, better formulation, managed overheads) and growing the business with key retail partners,” the company said in a regulatory filing.

Lepanto Ceramics, formerly known as Guoco Ceramics Inc., was established on April 23, 1990 and was a top manufacturer of ceramic floor and wall tiles under the brand Lepanto Tiles. It has a manufacturing plant on a 14.3-hectare company-owned property within the industrial zone of Calamba, Laguna.

As an investment holding company, Prime Orion has interests in real estate and property development, manufacturing and retailing/distribution, financial services and other allied services, organized under several intermediate holding and operating companies.

Its shares lost P0.01 to close at P0.48 apiece on Monday.