BCDA amenable to compromise with CJHDC

Bases Conversion Development Authority (BCDA) president Rufo Colayco is amenable to a compromise with the Camp John Hay Development Corp. regarding the latter’s debt to the former.

According to Colayco, the BCDA is aware of the financial difficulties of the CJHDC and, as such, is willing to restructure the almost P1-billion debt of CJHDC.

"You cannot squeeze blood out of stone," Colayco admitted.

The BCDA, Colayco said, is willing to accept a combination of cash, deferred payment and dacion en pago involving some of the cottages already constructed by CJHDC.

The BCDA and CJHDC had actually reached a restructuring agreement way back in 2002. But CJHDC continued to experience difficulty in meeting its obligations to the BCDA.

CJHDC had won the right to lease and develop the former US military recreational facility in Baguio in the early 1990s. CJHDC is majority controlled by the Fil-Estate Group.

At that time, the economy was booming and prospects for Camp John Hay were bright. Unfortunately, when the Asian economic crisis hit in 1997, CJHDC found itself in trouble, unable to meet its obligations.

Under its rental contract with the BCDA, CJHDC is to pay the BCDA around P425 million annually.

Colayco said CJHDC was able to initially pay the BCDA an advance of around P250 million, but thereafter the company started experiencing financial difficulties.

When the BCDA and CJHDC reached a restructuring agreement in 2000, BCDA again made a payment of P50 million. Unfortunately, CJHDC continues to experience problems in meeting its obligation with the BCDA.