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Business

Benpres eyes sale of non-core assets

- Zinnia B. Dela Peña -
The Lopez-owned Benpres Holdings Corp. will continue with the divestment of its non-core assets this year to pay off maturing obligations and allow it to focus on its bread-and-butter businesses – power generation and media.

After making an interest payment of $5 million to creditors last June 2, Benpres is now getting ready for the settlement of another $5.5 million in interest payments due this November.

Among the measures being eyed by the company to address its financial obligations is the orderly disposal of First Philippine Infrastructure Development Corp. (FPIDC), Rockwell Land Corp., Customer Contact Center Inc. (C-Cubed), Beyond Cable Inc. and Bayan Telecommunication Holdings Corp.

Benpres chief financial officer Angel Ong said discussions are now ongoing for the the sale of its investment in Rockwell (25 percent valued at P1.6 billion), C-Cubed (valued at P100 million), and FPIDC (68 percent). Ong refused to divulge the parties involved in the talks but expressed confidence that a deal is forthcoming in the next few weeks.

FPIDC is the principal company behind the rehabilitation and expansion of the North Luzon Expressway while C-Cubed is engaged in call center operations.

Rockwell, on the other hand, is a property firm engaged in upscale residential and commercial development.

Ong said the company is also in the process of acquiring Verizon Wireless’s 22-percent shareholdings in losing telecoms subsidiary BayanTel.

He said while discussions with creditors are ongoing for the proposed retructuring of its $552-million debt, the company is uncertain whether it could settle the $5.5- million loan interest due this November.

"We have not made any commitments. Right now, it’s a best effort undertaking. If we have funds then we will continue to service debts, " Ong told reporters following Benpres’ stockholders meeting yesterday.

Ong said the company aims to complete the planned divestments this year. The divestment program forms part of the holding firm’s balance sheet management plan (BSMP) which was formulated a year ago to address the liabilities of Benpres, which have been a drag on the company’s profitability over the past two years.

The BSMP, which is intended to restore Benpres’ long-term financial health, requires the holding firm to consider rescheduling some of its obligations to match the longer-term nature of its assets, as well as to allow it to execute an orderly asset divestment program.

Benpres chairman Oscar M. Lopez expressed confidence that the holding firm’s creditors would approve the proposed restructuring of its total debt. "I am pleased to report that the independent accountants hired by our creditors to review our business plan agreed with our assumptions in that plan," Lopez said.

"These initiatives, originally recommended by Benpres, and adopted by creditors will serve to ensure that the debt restructuring reached with creditors is equitable, credible, supported by the majority of Benpres’ creditors and protects the interests of Benpres’ shareholders," Lopez said.

Lopez said the BSMP is expected to preserve and strengthen the company’s long-term financial position.

Discussions with creditors have been ongoing since March 2002 and there have been a number of creditors meetings in Hong Kong, Manila and Singapore with the help of the holding firm’s advisors.

ANGEL ONG

BAYAN TELECOMMUNICATION HOLDINGS CORP

BENPRES

BENPRES HOLDINGS CORP

BEYOND CABLE INC

C-CUBED

COMPANY

CREDITORS

CUSTOMER CONTACT CENTER INC

LOPEZ

ONG

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