Absolut withdraws cases against Phoenix

MANILA, Philippines — Lucio Tan-owned Absolut Distillers Inc. (ADI) has agreed to withdraw the cases filed against Dennis Uy’s listed oil company, Phoenix Petroleum, after the latter agreed to pay its debts.

ADI earlier filed a complaint against Phoenix Petroleum for unpaid bioethanol purchase amounting to P157 million.

As a result of the complaint, Judge Wilhelmina Go-Santiago, presiding judge of Branch 14, Regional Trial Court of Nasugbu, Batangas issued on Sept. 28, a writ of preliminary attachment.

Simultaneous with the service of summons and writ of preliminary attachment, garnishment notices were also served on the depositary banks of Phoenix including BDO Unibank, Philippine National Bank, Metrobank and BPI.

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

Aside from ADI, Asian Alcohol Corp. (AAC) also withdrew its similar cases filed against Phoenix. AAC is an alcohol company also previously owned by Tan that was  sold to affiliate Victorias Milling Corp. as part of the group’s plan to consolidate its alcohol business.

“In connection with the cases filed by ADI and AAC against Phoenix, we confirm that the parties have reached an amicable settlement. ADI and AAC have accepted Phoenix Petroleum’s reasonable payment plan and agreed to withdraw the cases pending in courts to afford Phoenix a conducive space to continue its business operations. This way, Phoenix can comply with its commitments under the payment plan and address its obligations to other creditors. We extended this liberality as we believe in Phoenix’s good faith and ability to fulfill its obligations during these challenging times.”

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

Phoenix Petroleum is one of the country’s independent oil players.