Uniwide losses balloon to P2.665 B in 1999

The cash-strapped Uniwide Group of Companies continued its losing streak, incurring a bigger net loss of P2.665 billion in 1999 compared to P667.2 million in the previous year.

In a disclosure to the Securities and Exchange Commission (SEC), Uniwide said its operations and finances deteriorated further last year because of the substantial interest payments to its creditors to which it owes an aggregate of about P13 billion.

Uniwide also attributed its bigger net loss to poor sales of its commercial and residential lots and leasehold rights on commercial spaces as buyers and potential investors shied away from the company after it filed for debt relief in June last year.

Uniwide losses on sales of commercial and residential lots went up to P279.613 million in sharp contrast to its positive gross profit of P8 million in 1998 and P176 million in 1997. It also lost P9.44 million on leasehold rights on commercial spaces compared to its learning of P5.3 million in 1998 and P242 million in 1997 as it also experienced difficulty in collecting receivables from tenants.

To get back on its feet, Uniwide is awaiting the approval of its amended rehabilitation plan by the SEC. At the same time, it has been entering into agreements with its creditors for a dacion en pago or payment in kind settlement of its debts. It has already signed an agreement with the United Coconut Planters Bank and East Asia Capital for a dacion en pago scheme.

Last February, Uniwide signed a memorandum of understanding with the French retail group, Casino Guichard-Perrachon which will pay P3.57 billion in cash for 89.2 percent of Uniwide subsidiary, Uniwide Sales and Warehouse Club Inc. (USWCI).

Uniwide said that with the fresh equity infusion, together with the dacion en pago arrangements with the creditor banks, Uniwide will be able to settle a substantial portion of its obligations.

Uniwide also sold another subsidiary, First Paragon Corp. (FPC) to IMart International for P145 million. FPC controls the Uniwide Family stores, a chain of convenience stores. Under the deal signed by FPC and IMart, the former will turn over the building, leasehold improvements, machinery and equipment, office furniture and fixtures, store furniture and fixtures, transportation equipment and all other assets of the 39 existing and operational Uniwide Family Stores, including the five stores that have never been operated or have caused to operate.

IMart will also take over the leasehold rights for the stores as well as the advance rentals paid and deposits of FPC.