UDENNA Corp. announced that the notice of declaration of default sent to Clark Global City Corp. (CGCC) on July 22, 2022 has already been removed.
According to an official statement, Udenna Corp. said the affected loan under the Omnibus Loan and Guarantee Agreement involving CGCC, as the primary borrower, was reinstated after payment was made by the July 27 deadline.
As a reminder, on July 23, 2022, Udenna Corp. confirmed a report that it received a formal notice on July 22, 2022, adding that the formal notice was issued against subsidiary CGCC, which is developing the 177-hectare Clark Global. City in the Clark Freeport area, but not Udenna Corp., which is the main holding company of Uy’s business empire.
The problem stemmed from CGCC’s inability to make payments to Clark International Airport Corp. The outstanding loan amounted to $4 million, or about 225 million pesos. Several industry officials have expressed concern that a default could trigger a crisis due to cross-default provisions.
“With this matter behind us, all parties involved remain committed to working together and cultivating their shared value through an impactful partnership,” the company concluded in the statement.