BHI sells Boni Land stake to pay debts

Hotel and property developer Boulevard Holdings Inc. has disposed of its 1.12-percent interest in Bonifacio Land Corp. (BLC) for P282.21 million to settle its debts as well as those of its wholly-owned subsidiary, Askar Ltd.

In a disclosure to the Philippine Stock Exchange, BHI corporate information officer Ana Maria Katigbak said the company had sold its stake in BLC to settle the obligations of Askar Ltd. and its obligations to Metro Pacific Corp., the controlling stockholder in BLC.

She said the disposal of shares of stock in BLC will result in the decrease of investment of P245.4 million and deferred charges of P33.9 million. However, its investment in the condominium property will increase by P35.3 million.

Katigbak added that the share sale will also result in a decrease in bank loans by P252.285 million as principal and accrued interest due to First e-Bank Corp., a Metro Pacific affiliate, will be fully paid off.

"The assignment of shares will result in a net gain of P2.909 million," she said.

Based on the terms, BHI’s 613,502 shares in BLC were sold at its fair market value of P460 per share to First e-Bank (P250.459 million) and Metro Pacific (P31.752 million).

First e-Bank is the bank creditor of Askar Ltd. while MPC is the owner/developer of Pacific Plaza Towers from whom BHI purchased the condominium unit. – Conrado Diaz Jr.