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Business

Wellex, ALI get clearance to develop Plastic City

Iris Gonzales - The Philippine Star

MANILA, Philippines — The Wellex Group can now proceed with its joint venture with Ayala Land Inc. to develop portions of the so-called Plastic City in Valenzuela.

This comes after the termination of the rehabilitation case of Wellex Industries’ subsidiaries and the settlement of loans with Lucio Tan-owned Philippine National Bank.

Last month, Wellex Industries received information that the rehabilitation case of its subsidiaries was terminated due to the payment of loans by the principal borrower.

“In this regard, the properties of its subsidiaries, marked with encumbrances due to the existence of the rehabilitation court case, will now be free from any lien and encumbrances,” Wellex said.

Wellex said the termination of the rehabilitation court case allows the concerned subsidiaries of Wellex to continue with the memorandum of agreement (MOA) with Avida Land, a subsidiary of Ayala Land.

The agreement with Avida Land has not been rescinded, Wellex said.

“In fact, the termination of the rehabilitation case and the subsequent lifting of the annotations on the titles covering the Plastic City properties are part of the responsibilities of the company under the MOA with Avida Land,” Wellex said.

“ Once the property is developed under the terms of the MOA, the concerned subsidiaries of Wellex will thereafter generate corresponding cash inflows,” Wellex said.

Way back in 2012, Ayala Land and the Gatchalian family, owner of Wellex, finalized a deal to develop 17 hectares of the latter’s “Plastic City” estate in Valenzuela City.

It was envisioned to be redeveloped into a mixed-use urban complex in northern Metro Manila.

PLASTIC CITY

WELLEX GROUP

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