ASB Group granted debt relief

The Securities and Exchange Commission (SEC) granted yesterday a 60-day debt reprieve to debt-saddled property developer ASB Group of Companies whose obligations to banks and other creditors have reached P12.7 billion.

At the same time, the SEC appointed former SEC commissioner and former Petron chairman Monico V. Jacob as interim receiver of the company.

The SEC, in its order, also stopped ASB from disposing of its properties in any manner, except in the ordinary course of its business and from making any payments of its liabilities. The SEC has also set a hearing on May 22 for the creation of the rehabilitation receiver and a management committee.

The ASB Group is the owner and developer of numerous real estate projects, mostly condominium projects, of which 19 are completed and four, particularly the BSA Twin Tower, Garden Heights, the ASB Malayan Tower and Legaspi Place, are currently under various stages of construction.

In its petition for receivership and suspension of debt payments, the ASB Group said its total assets of P19.410 billion are more than enough to cover for its liabilities amounting to P12.7 billion despite its problems, its operation are still viable.

Most of ASB's projects were financed with loans or borrowings from bank and individual creditors.

The ASB Group expressed hope that their move to elevate the matter to SEC will result in an orderly and equitable manner of repayment to all those who have placed their trust in the company.

An ASB spokesman reiterated the Group's commitment to honor all its obligations and to resolve this matter in the earlier possible time.