In a motion filed with the Securities and Exchange Commission by the Santiago & Santiago law firm, Uniwide said the dacion en pago transactions with United Coconut Planters Bank, International Exchange Bank and Metropolitan Bank and Trust Co. "may be validly implemented without violating the prohibition on preference of payments."
Uniwide filed the three separate dacion en pago motions on Jan. 26, 2001 but objections were raised by five unsecured creditors, namely Universal Robina Corp., Nestle Philippines Inc., Hidden Springs & Perrier Inc., LG Collins Electronics Manila Inc. and Asian Electronics Corp. and one secured creditor, the Bank of the Philippine Islands.
In justifying its move, Uniwide said these oppositors merely represent a fraction of the company’s total 1,983 creditors out of which 1,970 are unsecured and 13 are secured.
"It is therefore clear that a majority of the creditors, both secured and unsecured, have no objections, either impliedly or expressly, to the above-mentioned motions for the partial implementation of the plan," Uniwide’s legal counsel said.
Uniwide said the dacion en pago arrangement is for the best interest of the creditors, especially the unsecured group, since this will mean a P1.59-billion reduction in Uniwide’s total P9.624-billion outstanding obligations, "which will make the on-going business attractive to new investors in place of Casino Guichard-Perrachon."
Early this year, French retail giant Casino backed out of a deal that called for its infusion of about P4.5 billion to gain majority control of Uniwide.
In addition to the debt reduction, the dacion en pago would result in the properties mortgaged to the said banks released and make them available to settle obligations to other creditors, particularly the unsecured ones.
Also, the expenses and losses of Uniwide on the said properties will be eliminated, which will result in more funds, which in lieu of payment for real estate property taxes, security and maintenance, will also be made available for payment of debts.
Uniwide said the partial implementation of the plan will not affect BPI because it is a secured creditor and in the event that the plan is determined not to be feasible, it will just foreclose the properties mortgaged to it.
"The plan is already in the implementation stage and preference of payments is no longer an issue. Necessarily, in the implementation of the plan, some creditors will get paid ahead of the others, depending on the payment scheme as provided in the plan," Uniwide said.
However, Uniwide added this is not tantamount to preferential treatment in the issuance of payments as the end result in implementing the plan is the payment of all the creditors in accordance with the plan’s provisions. – Conrado Diaz Jr.