Based on documents submitted to the PSE, the Uniwide Group has settled P4.62 billion of its debts by way of dacion en pago or payment-in-kind, reducing total debt to only P5.82 billion.
The Uniwide Group has fully settled its debts to East Asia Capital, MetroBank, Asian Alliance Investment Corp., United Coconut Planters Bank, International Exchange Bank, and Bank of the Philippine Islands.
The remaining debt of the discount warehouse club operator is owed to Land Bank of the Philippines (P44.14 million), Equitable-PCIBank (P493.42 million), Rizal Commercial Banking Corp. (P471.42 million), Global Bank (P50.51 million), Allied Bank (P360.65 million), Philippine National Bank (P832.96 million), PCCI (P70.64 million), ING Bank (P171.3 million), First Paragon Corp. (P4.8 million), trade suppliers (P1.66 million), contractors (P407.91 million), Coastal Mall tenants (P85.3 million), among others.
The Securities and Exchange Commission recently approved the Uniwide Group’s plan to issue convertible notes to unsecured creditors pursuant to its second amended rehabilitation plan.
The bond issuance is aimed at further reducing Uniwide’s debt to more manageable levels and regaining the firm’s status as one of the country’s largest discount retail firms.
Under the plan, Uniwide will settle its P2.59 billion obligations to unsecured creditors through the conversion of 50 percent of the unsecured debt into 15 year convertible notes that are redeemable anytime at the option of the debt-strapped firm.
The other half of the unsecured debt shall be restructured into a 10-year loan with zero interest, a grace period of three years and whose principal payment will start only on the fourth year. The restructured debt will be paid from the cash flow from the retail operations.
Bulk of the total unsecured debt of P2.59 billion is held by trade suppliers. Other unsecured creditors include contractors which have a loan exposure of P407.91 million, lenders (P99.75 million), Coastal Mall tenants (P85.3 million), and non-trade suppliers (P327.46 million).
As for its secured debt, Uniwide is presently negotiating with investors from Hong Kong for the operation of Coastal Mall (Manila Bay). The company is looking at a fresh infusion which will be used to pay off creditor-banks.
As the remaining lease period of the Coastal Mall is 11 years, the investor is expected to renovate the area as soon as the agreement is executed for the immediate business operation.
The Uniwide Group suffered from liquidity problems as a result of the economic crunch and a failed diversification. It filed for suspension of debt payments and rehabilitation with the SEC in June 1999.
It is composed of Uniwide Sales, Inc., Uniwide Holdings, Inc., Naic Resources & Development Corp., Uniwide Sales Realty & Resources Corp., First Paragon Corp., and Uniwide Sales Warehouse Club Inc.