The company obligations of Davao City tycoon Dennis Uy, which is developing Clark Global City, have been settled ahead of schedule, conglomerate Udenna Corporation said Monday.
“With respect to the various reports recently released, which implicated Clark Global City Corporation (CGCC), Clark International Airport Corporation (CIAC) and a consortium of banks led by BDO Unibank, we would like to announce that Udenna Corporation has settled the matter. today, July 25, 2022, ahead of the prescribed deadline, and to the satisfaction of the Majority Lender and Consortium Banks,” Udenna said in a statement.
The conglomerate released the statement amid reports that it received notice of default on Friday from a consortium of banks led by BDO as majority lender against Clark Global City Corp. (CGCC).
CGCC is a unit of Udenna.
In a statement to the Philippine Stock Exchange, BDO confirmed, as majority lender, that it had issued a notice of default against CGCC “with respect to its obligations under the head lease agreement between CIAC and Global Gateway. Development Corporation (GGDC), a subsidiary of CGCC.
The lender said “CGCC’s relevant obligations to BDO are secured and a default will not have a material adverse effect on BDO’s financial condition and business.”
Similarly, Udenna said the declaration of default relates to certain obligations of GGDC with CIAC, which are not due until Wednesday, July 27, 2022.
“To be clear, CGCC or GGDC did not fail to repay the interest or principal of its debt to the consortium banks, and therefore, in affirmation, CGCC responded to the consortium banks to dispute the default finding, and clarified that, under the circumstances, there was, in fact, no event of default, or at least no irremediable event of default, under the head lease agreement on the part of CGCC or of GGDC,” the company said.
“The declared financial liability was not a liability to the consortium banks, but an obligation of GGDC to CIAC, which as noted above has already been settled,” he said.
After Rodrigo Duterte took over as president in 2016, Uy – one of the former president’s top campaign donors in the 2016 election – expanded his empire through acquisitions and debt-financed ventures, including including taking over the Malampaya facility, establishing the third telco, DITO, and acquiring several companies such as Familymart, Conti’s and Enderun.
Duterte’s six-year term ended on June 30.—AOL, GMA News