ASB Seeks 60-Day Extension Of Debt Reprieve

The debt-ridden ASB Holdings Inc. has sought another 60-day extension of a debt moratorium from the Securities and Exchange Commission (SEC) due to time constraints in the hearing on its rehabilitation plan.

Through its legal counsel Santiago & Santiago, ASB clarified the motion to seek another extension was not intended to delay the proceedings in resolving claims for ASB’s P9-billion outstanding loans.

The SEC had earlier ordered the suspensions of ASB’s debt payments until Oct. 31 but since hearings on its rehabilitation plan have been reset to Oct. 30 and Nov. 13, ASB said the SEC’s decision to approve or disapprove the plan would not be known by then.

ASB is seeking another 60-day debt reprieve or until Dec. 30 this year.

Under the rehab plan, the Luke Roxas-controlled group of companies had proposed the settlement of its debts through dacion-en-pago or outright sale of its real estate assets.

Also, the real estate firm will complete or sell ongoing projects and invite unsecured creditors to purchase real estate parcels and other assets and set off the amount of their outstanding claim against the purchase price.

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.

The group owes P3.9 billion to more than 700 individual creditors and P5 billion to various creditor banks led by Allied Bank, Philippine National Bank, Metropolitan Bank and Trust Co., United Coconut Planters Bank, Equitable PCI Bank and Rizal Commercial Banking Corp. – Conrado Diaz Jr.