Lopez company seeks another reprieve from debt payment
- Zinnia B. Dela Peña () - June 25, 2003 - 12:00am
FGHC International Ltd., a wholly-owned subsidiary of the Lopez-controlled First Philippine Holdings Corp, (FPHC) has asked its creditors anew to extend the repayment date of its $60 million by another month or until July 31, 2003.

In a statement filed with the Philippine StockExchange yesterday, FPHC said it is still negotiatingfor a $30-million loan that, together with the $35-million borrowing from Asian Infrastructure Mezzanine Capital Fund (AIMCF), will allow FGHC International to settle the $60-million indebtedness.

FGHC International had made a partial payment of $10- million plus interest up to May 22 this year, leaving only $60 million that still needs to be addressed.

The term notes to be issued by FGHC International will allow for another possible set of investors to purchase additional guaranteed notes in the total amount of up to $35 million with call and put options for up to another 3.5- percent stake in First Generation Holdings Corp. (FHGC).

This will be at a premium over the valuation made relating to Sumitomo Corp.‘s investment in FGHC last December 2001. AIMCF likewise has a one-time right to put all or part of the call options to FPHC subject to certain conditions.

FPHC also expects to raise another $20 million either through asset sale or borrowing. The money will be used to pay off debts and improve the company’s balance sheet.

FPHC has P800 million in long-term commercial papers maturing this year and early next year – P280 million (November), P280 million (December) and the balance of P240 million in January 2004.

Earlier company officials said they are eyeing a P3-billion net income this year or an increase of 53 percent from the P1.958-billion profit reported a year ago. Bulk of the projected income is expected to come from FPHC’s power generation business.

FPHC has four power plants: Bauang Private Power plant, which sells to the state-run National Power Corp.; Panay Power plant, which sells to Panay Electric Co.; and the Sta. Rita and San Lorenzo plants, which sell to Manila Electric Co.

ASIAN INFRASTRUCTURE MEZZANINE CAPITAL FUND BAUANG PRIVATE POWER FIRST GENERATION HOLDINGS CORP FIRST PHILIPPINE HOLDINGS CORP FPHC INTERNATIONAL LTD MANILA ELECTRIC CO MILLION NATIONAL POWER CORP PANAY ELECTRIC CO PANAY POWER
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with