Lopez Holdings, UnionBank sign debt repayment deal

Lopez Holdings Corp. — formerly Benpres Holdings Corp. — signed on Wednesday a debt repayment scheme with Aboitiz-owned UnionBank of the Philippines. Lopez Holdings president Salvador Tirona told the Philippine Stock Exchange (PSE) it signed an acceptance deal to settle its $19.93 million Eurobonds held by UnionBank. Tirona noted that Lopez Holding would make bullet repayments of the principal amount in 12 years and six months at a fixed rate of 4 percent year based on the gross of final tax. “With the settlement of this debt, the remaining obligations of Lopez Holdings [will] amount to $25 million and P875 million," Tirona noted. The settlement complied with the term sheet circulated by the company to its creditors on Dec. 19, 2009, Lopez Holdings said in its disclosure with the PSE. Tirona had earlier said he wanted to reduce further the company’s debts to P1.2 billion before the end of the year as some of the creditors were willing to accept a settlement offer. Lopez Holdings’ debt stood at P3 billion as of end-June 2010. Once the company addresses its remaining debts, Tirona said the company would focus on wiping out its deficit so the company could finally declare dividends among its shareholders. Almost a fourth of the original debt was incurred due to the failed operations of its water subsidiary, Maynilad Water Services Inc., which is now owned by Metro Pacific Investments Corp. and DMCI Holdings Inc. Lopez Holdings has interests in ABS-CBN Broadcasting Corp., Sky Cable Corp., Bayan Telecommunications Inc., First Philippine Holdings Corp., First Gen Corp., and Rockwell Land Corp. —With Jesse Edep/VS, GMANews.TV