SMC chief executive officer Benson U. Dakay said the P221.8 million represents loan interests and other company commitment and obligations under an omnibus agreement signed between the company and its creditors. The agreement spelled out the company’s 10-year rehabilitation program.
The consortium includes Equitable PCI Bank, Bank of the Philippine Islands, Land Bank of the Philippines, Metropolitan Bank and Trust Co., United Coconut Planters Bank, Union Bank of the Philippines and Global Business Bank.
Aside from these banks, company sources said that the Philippine National Bank (PNB) and Export and Import Bank (EIB) are scheduled to join the consortium this month after 14 months of negotiations between the banks and SMC.
SMC’s financial troubles began during the Asian financial crisis of 1997-1998, its operations were adversely affected due to its dollar-denominated loans and wild fluctuations in the foreign exchange. Its total restructured loans is P1.6 billion.
Dakay said that SMC paid P138.2 million in 2001 and P83.4 million to the consortium from 2001 to 2002.
"We have not missed our interest payments and have adhered to the repayment schedule. Our agreement with the banks is enabling us to pay our debts since the restructuring gives us room to make a turnaround," stressed Dakay.
Under the omnibus agreement signed last year, Equitable PCI Bank gets 29.01 percent of the total while Landbank gets 24.66 percent; Metrobank – 20.83 percent; UCPB – 13.56 percent; Union Bank – 10.39 percent, and Global Bank – 1.55 percent.
Dakay said SMC will meet its commitments under the omnibus agreement given the already solid market of seaweed and carrageenan in the international markets such as the US and European Union.