Dennis Uy's firm clarifies report, says to 'immediately resolve' issue with CIAC

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Dennis Uy's firm clarifies report, says to 'immediately resolve' issue with CIAC

ABS-CBN News

 | 

Updated Jul 25, 2022 01:06 PM PHT

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Businessman Dennis Uy during the Senate hearing on the third telco in the country on January 24, 2019. George Calvelo, ABS-CBN News
Businessman Dennis Uy during the Senate hearing on the third telco in the country on January 24, 2019. George Calvelo, ABS-CBN News

MANILA (UPDATE) - Dennis Uy's listed subsidiaries on Monday said its unit Clark Global City Corp (CGCC) and the Global Gateway Development Corp (GGDC) did not fail to make repayment of any bank debt or interest.

Global Gateway Development Corp is a subsidiary of CGCC which holds the lease rights to the 177 hectares of land within the Clark Civil Aviation Complex at the Clark Freeport Zone in Pampanga.

On Saturday, the Davao-based businessman's Udenna Corp confirmed receiving a notice of declaration of default from a consortium of banks led by BDO Unibank.

The declaration of default is in relation to the obligations of GGDC with Clark International Airport Corporation (CIAC) which are due on Wednesday, July 27, Uy's listed firms said in separate company disclosures to the stock exchange.

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"To be clear, CGCC or GGFC did not fail to make any interest or principal repayments with its debt to the consortium banks," the statement said.

"Thus, in contention, CGCC replied to the consortium banks to dispute the default conclusion and clarified that, under the circumstances, there has been, in fact, no Event of Default, or at the very least, no irremediable Event of Default, under the master lease agreement on the part of CGCC or GGDC," it added.

A Philippine Daily Inquirer report quoted BDO sources who disclosed that the loan in question was $4 million.

Uy's firm said the cited $4 million liability "was not a liability to the consortium banks but an obligation of GGDC to CIAC."

"GGDC and CGCC are going to immediately resolve this matter with the CIAC today, 25 July 2022, or before the stated deadline of 27 July 2022," the statement said.

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"Upon resolution of this matter, any default scenario under the Master Lease Agreement with CIAC or the debt liabilities with the consortium of banks will not exist," it added.

Chelsea Logistics, Phoenix Petroleum, DITO CME and PH Resorts, in separate disclosures on Monday, said the issue should have no effect on their business operations and financial conditions.

In a separate disclosure released on Monday, BDO Unibank confirmed that the notice of default was issued in relation to GGDC's obligations to CIAC.

"CCGC has assured BDO that it is in the process of updating its obligations to its lessor, CIAC," the lender said.

"The relevant obligations of CGCC to BDO are secured and a default will not have a material adverse effect on the financial condition and business of BDO," it added.

-- with report from Warren De Guzman, ABS-CBN News

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