Phoenix Petroleum says business as usual amid debt woes

MANILA, Philippines — Independent oil player Phoenix Petroleum, facing a writ of attachment that effectively orders the seizure of its properties, said it would continue discussions with its creditors and lenders.

“We shall also maintain business-as-usual operations as we continue to serve customers,” the Dennis Uy-owned firm said yesterday.

Phoenix, however, said it has not received yet the writ of preliminary attachment issued by a Batangas court.

Judge Wilhelmina Go-Santiago, presiding judge of Branch 14, Regional Trial Court of Nasugbu, Batangas, issued on Sept. 28, the writ against Phoenix following a complaint filed by Lucio Tan-owned Absolut Distillers Inc. for Phoenix’s unpaid debt.

The writ stemmed from a complaint filed by Absolut Distillers for the collection of P157 million worth of debt, which the company said Phoenix failed to settle despite numerous demands.

Simultaneous with the service of summons and writ of preliminary attachment, garnishment notices were also served on the depositary banks of Phoenix that include BDO Unibank, Philippine National Bank, Metrobank and BPI, Absolut said in a statement.

The writ of garnishment has the effect of freezing the accounts of Phoenix and preventing it from withdrawing any amount.

In an order dated Sept. 23, 2022, the court allowed the issuance of a writ of preliminary attachment as requested by Absolut.

In response, Phoenix Petroleum told the Philippine Stock Exchange it has yet to receive “copies of the complaint, summons as well as the writ of preliminary attachment issued by the court.”

“We, at Phoenix, are determined to protect our rights and interests in the appropriate venue and assure our stakeholders that we will continue our operations and provide value to our community. Rest assured that we will properly address the complaint once we have officially received them.”

However, Batangas court sheriff Edwin Vasquez told The STAR that the writ has been served Thursday at Uy’s Udenna Tower in Taguig.

Phoenix’s debt to Absolut Distillers stemmed from unpaid bioethanol purchase from the Lucio Tan-owned company of its bioethanol requirements.

The STAR earlier reported that aside from Absolut Distillers, Phoenix also had debts to other bioethanol producers such as URC-La Carlota, Far East Alcohol Corp., ProGreen Balayan and Asian Alcohol but Phoenix said that part of these obligations had already been paid.