Udenna Corp., the unlisted holding company of businessman Dennis Uy, said Monday it paid lease payment to Clark International Airport Corp. to avoid possible debt default and foreclosure.
Udenna said in a statement it settled the financial liability on Monday, ahead of the July 27 mandated deadline “to the satisfaction of the majority lender and the consortium banks.”
Udenna said over the weekend it received a notice of declaration of default from a consortium of banks led by BDO Unibank Inc. based on the grounds of “continuing and irremediable events of default” in relation to the master lease agreement between CIAC and Global Gateway Development Corp.
Udenna denied defaulting on loans of unit Clark Global City Corp.
“To be clear, CGCC or GGDC did not fail to make any interest or principal repayments with its debt to the consortium banks, and thus, in contention, CGCC replied to the consortium banks to dispute the default 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,” said Udenna.
CGCC, through subsidiary GGDC, has the leasehold rights on a 177-hectare property in Clark Freeport Zone. The property is master-planned as a mixed-use development that hosts top-grade office buildings, retail outlets, academic centers, sports centers, an urban park, an iconic tower, a hotel and casino and modern support services and amenities.
Udenna said the debt issue pertained to CCGC’s financial liability with CIAC and not with the consortium banks. “We hope this clarifies this matter, and we appreciate the continued support provided by consortium banks to Udenna Corp. We have always believed that they positively agree to our approach on this matter,” it said.
Uy’s listed stocks Chelsea Logistics and Infrastructure Holdings Corp., Phoenix Petroleum Corp. and DITO CME Holdings Corp. were the biggest losers Monday despite Udenna’s clarification. The share price of Chelsea fell 11.8 percent to P1.12, Phoenix by 11 percent to P8.7 and DITO CME by 3.4 percent to P3.94.
Meanwhile, BDO Unibank Inc., the country’s largest lender in terms of assets, said Monday any loan default by Udenna Corp. to a consortium of banks would not have a “material adverse” impact on BDO’s operations and financial status.
“We confirm that BDO, as majority lender, has issued a notice of default on Clark Global City Corp., a company controlled by businessman, Dennis Uy, in relation to its obligations under the master lease agreement between Clark International Airport Corp. and Global Gateway Development Corp., a subsidiary of CGCC. CCGC has assured BDO that it is in the process of updating its obligations to its lessor CIAC,” BDO said.
“The relevant obligations of CGCC to BDO are secured and a default will not have a material adverse effect on the financial condition and business of BDO,” BDO said.