Prime Orion sells property to settle case with SPV

Holding company Prime Orion Philippines Inc. sold its property in Mandaue City in Cebu to partially fund its settlement cases with a special purpose vehicle (SPV). Prime Orion, through a letter signed by corporate secretary Daisy L. Parker, told the Philippine Stock Exchange that it would dispose its 18,357 square meter property for P275.34 million. The property would be sold to 118 Holdings Inc. Of the total sale amount, 89 percent or P245.08 million will be allotted for the compromise amount to settle its cases with Asset Pool A Inc. Prime Orion’s subsidiaries Lepanto Ceramics Inc. and Orion I Holdings Philippines Inc. are also named in the cases. APA is the assignee of Prime Orion’s lenders United Coconut Planters Bank and Lepanto Ceramics’ loans with Ayala-led Bank of the Philippine Islands (BPI) and Metropolitan Bank & Trust Co. “The settlement will reduce the Prime Orion Group’s consolidated loans as of Aug. 10, 2009 by P1.07 billion, thereby resulting to a consolidated loan balance of P480 million," she said. The parties agreed to compromise on the amount of P680 million. - GMANews.TV