Dennis Uy’s firm receives default notice from banks; Udenna disputes

Davao City-based tycoon Dennis Uy’s firm has received a default notice from a group of lenders led by BDO Unibank Inc.

In a statement on Saturday, Uy’s conglomerate Udenna said that it received a Notice of Declaration of Default on Friday from a consortium of banks led by BDO as the majority lender against Clark Global City Corp. (CGCC).

CGCC is a subsidiary of Udenna. 

The default declaration notice was sent “on the grounds of, as described by the Majority Lender, ‘continuing and irremediable Events of Default’ in relation to the Master Lease Agreement between Clark International Airport Corporation (CIAC) and Global Gateway Development Corporation (GGDC)," Udenna said.

The Philippine Daily Inquirer broke the news that Uy’s company received a foreclosure notice from BDO in relation to the businessman’s failure to be up-to-date with lease payments to CIAC.

While it confirmed receipt of the Notice of Declaration of Default from the group of banks, Udenna disputed that it was in default.

“In contention, we replied to the consortium banks to dispute their conclusion and clarified that, under the circumstances, there has been, in fact, no Event of Default or, at the very least, no irremediable Event of Default, under the Master Lease Agreement on the part of CGCC or GGDC,” the company said.

“GGDC and CIAC are working on an amicable resolution that will not result in any violation under the Master Lease Agreement. We trust that we have been able to clearly state our position on the matter,” it added.

After Rodrigo Duterte assumed the presidency in 2016, Uy expanded his empire through debt-funded acquisitions and ventures, including the takeover of 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. —VBL, GMA News