Steniel’s corporate information officer Nicanor Juan Montoya said the company received a notice of default last Sept. 30 declaring the entire amount due and payable on or before Oct. 10, as stipulated in the Nov. 10, 2000 omnibus agreement entered with the various lender banks.
"The notice provides that the lenders shall enforce their remedies under the omnibus agreement for failure by the corporation to make timely payment," Montoya said, adding that the company has initiated the debt restructuring talks to avert such default.
Lately, several listed companies have been declared in default by their respective creditors, the most notable of which are Benpres Holdings Corp. and its subsidiary ABS-CBN Broadcasting Corp.
Steniel was a 72-percent subsidiary of Metro Pacific Corp. (MPC) before it was sold in Oct. 2002 to the regional investment firm CVC Asia Pacific Ltd. for P425.5 million.
MPC officials said Steniel was sold to CVC given its considerable experience in the paper packaging business in Europe. CVC Asia is an advisor to its parent company Citigroup on its investments in the Asia Pacific region. It also acts as an advisor to CVC Capital Partners Asia Pacific Ltd., managing over $750-million investment portfolio in Asia.
Steniel is also part of the growing list of MPC units that had been disposed over the past three years, in line with its asset rationalization program and debt management plan.
Its banking arm, First e-Bank, was also purchased by the SM Group’s Banco de Oro recently although the terms and conditions are still being worked out before the target financial closing date this coming December.