Pasay City court approves Bayantel rehab, paves way for Globe takeover

The Pasay City Regional Trial Court Branch 158 approved the debt restructuring and master restructuring plan that cover all creditors of cash-strapped Bayan Telecommunications Inc. (Bayantel), paving the way for a takeover by Globe Telecom Inc.

 

“The resolution granted the joint motion filed by Globe and Bayantel to amend Bayantel’s current debt restructuring plan and implement a new Master Restructuring Agreement for all of Bayantel’s creditors,” Marisalve Ciocson-Co, Globe head of legal service, noted in a disclosure to the Philippine Stock Exchange on Tuesday.

 

“The amendments also facilitate the entry of Globe into Bayantel as a shareholder and are expected to assure Bayantel’s successful rehabilitation,” Ciocson-Co added.

 

Globe intends to acquire a 56.6 percent stake in Bayantel under a debt-to-equtiy conversion covering 69 percent of Bayantel’s total debt.

 

“As the largest creditor of Bayantel, Globe intends to convert its debt holdings into 38.3 percent of Bayantel’s equity initially and subsequently convert further amounts of Globe’s debt holdings when relevant regulatory and corporate approvals are obtained,” said Ciocson-Co.

 

The the debt-to-equity exercise would shrink Bayantel's outstanding principal debt by  69 percent to $131.3 million from $423.3 million. — VS, GMA News