In a letter to the Philippine Stock Exchange (PSE), chief finance officer Herbert Consunji said. "Due to financial constraint, DMCIHI will not be able to wholly redeem the preferred shares as required under the original terms and conditions ."
The company issued the bonds in April 1997 with a mandatory redemption data after five years. Consunji said in lieu of redemption, the existing preferred shareholders may choose from any four options, differing mainly in mode of payment, valuation of shares, tenor, interest and type of security.
As such, DMCIHI had also requested the PSE for a one-year extension of the listing of the preferred shares to be able to implement the exchange offer. "During this one-year period, DMCIHI intends to hold discussions with the documentation of the exchange offer," Consunji said.
He added the extension will also allow DMCIHI to course the exchange through the facilities of the PSE, thereby allowing the holders to avail themselves of the benefit of lower tax rates for the transactions.
DMCIHI preferred shares last closed at P775 each. — Conrado Diaz Jr.