In an order, the commission en banc approved a dacion en pago deal with the Land Bank of the Philippines consisting of 12 properties with a total dacion value of P634.9 million.
"While such arrangement may not always be the optimum solution to a rehabilitation case, it is perhaps the most realizable option to unburden a distressed corporation’s debt load. What is more important is that the values used in the dacion are fair and reasonable so as not to steal value from unsecured creditors," the SEC said.
The agency also approved the request of Uniwide’s receivership committee for the sale of two properties owned by Uniwide Sales Realty and Resources Corp. in Malolos, Bulacan with a total value of P7.122 million.
It added while the request calls for the confirmation of the sale to effect the transfer of the titles as well as to allow the receivership committee to use the proceeds to fund current obligations and some dacion-related expenses, the SEC said the proceeds should only be lodged in a special account in the name of the receivership committee and should not be withdrawn or used without the commission’s prior approval.
Lastly, the SEC supported the sale of Uniwide Holding’s Cubao property by Equitable PCI Bank which were already dacioned in 1999 and titles were transferred to EBC.
"While the titles are technically not with Uniwide, the same was included in the rehabilitation plan for a more consolidated approach," the SEC said. The dacion value is manifested to be fairly valued against total debts of P404 million.
"The confirmation of the sale of the Cubao property by EBC appearing to be a mere request for formalities, the commission finds no reason not to grant the same," the SEC said.
The receivership committee has submitted an amended rehabilitation plan of the Uniwide Group with most of the creditor-banks reportedly agreeing to a dacion en pago settlement of nearly P13 billion in debts.
Under the rehabilitation plan, the assets of the Uniwide Group, as well as personal properties of the Go family which are being held by creditors as security for their loan will be used to settle the outstanding debts of the Uniwide Group.
The rehabilitation plan includes the dacion of assets to the Uniwide Group’s secured creditors and the settlement to its unsecured creditors through the cash flow of the retail operations.
Among the properties to be given up are three operating stores (Cabuyao, Libis and Avenida), two malls (Metromall and Coastal Mall), two future store sites (Cubao and Iloilo), commercial and residential lots in Cavite and Laguna, as well as commercial lots/properties in Caloocan, Parañaque, Pasig, Quezon City, Gen. Santos City, Malolos and Iloilo.
Uniwide owes around P2.537 billion to unsecured creditors. Instead of outright cash payment, Uniwide said 50 percent of the unsecured loans will be first converted into 15-year convertible notes redeemable any time at its option. The balance of 50 percent will be paid within 10 years, inclusive of a three-year grace period, from the cash from retail operations.– Conrado Diaz Jr.