Debt-ridden Liberty Telecoms Holdings Inc. (LTHI) is set to issue P4.8 billion worth of new preferred shares to Qatar Telecom's wi-Tribe venture, which seeks to enter the domestic telecommunications industry.

In a statement, LTHI said its board of directors have agreed to increase the company's authorized capital stock by P4.8 billion, all in the form of preferred shares. The board approved a fixed
valuation of P1.50 for the preferred shares until May 29, 2010.

LTHI said it would issue the preferred shares as payment for the loans obtained from wi-Tribe Ltd and/or White Dawn Solution Holdings Inc.

wi-Tribe, a joint venture between Qatar Telecom (Qtel) and A.A. Tukri Group of Companies (ATCO) of Saudi Arabia, was launched in May 2008, with Qtel having majority ownership.

In the same month, Qtel acquired 27.12 percent of LTHI, which holds a telecommunications license for broadband services based on Wi-Max technology, the same technology used by wi-Tribe aside from GSM.

QTel also happens to be the partner of San Miguel Corp. in its pursuit of opportunities in the wireless broadband, mobile and mobile broadband businesses.

LTHI is banking on the entry of a strategic investor to jumpstart its rehabilitation.

Recently, the company disclosed it was about to sign a definitive investment agreement with a prospective investor within 30 days. "It is also expected that the cash infusion will be made within the same period and in accordance with the Revised Rehabilitation Plan," LTHI said.

The Makati Regional Trial Court granted the company's petition for corporate rehabilitation and approved its revised rehabilitation plan in a resolution dated December 12, 2006.