C&P Homes to restructure $150-M floating rate notes

Low-cost housing builder C&P Homes has approved plans to restructure $150 million of its floating rate notes (FRNs) as part of a wider capital restructuring program.

In a disclosure to the Philippine Stock Exchange, C&P Homes said the restructuring plan, aimed at cleaning up its books, will be presented for approval by its shareholders on Nov. 14. Shareholders on record as of Oct. 10 are qualified to vote on the plan.

The FRNs were issued by C&P Homes International Ltd. and carry a guarantee from the parent firm.

Under the capital restructuring plan, C&P Homes will charge its accumulated losses against its capital. As a result, its authorized capital will fall to P500 million from P5 billion, and its subscribed and paid-up capital stock to 479.61 million shares from 4.796 billion shares.

"The application of the reduction surplus resulting from the... capital decrease (will) partially wipe out the accumulated deficit of the company," C&P said.

After this, C&P Homes shall issue new shares to bring its capital back to P5 billion.

The new shares will be issued to investors who have agreed to convert their holdings of C&P long-term commercial papers into C&P shares.

C&P Homes continues to settle some of its obligations through outright and unconditional sale of real estate properties and sale of assets as liquidity mechanism.

Certain assets have already been identified by management for disposition to provide the company and its subsidiaries with additional liquidity.

Among the firm’s creditor-banks include Bank of the Philippine Islands, Equitable PCI Bank, International Exchange Bank and Rizal Commercial Banking Corp.

C&P Homes, the country’s largest socialized housing developer, has also entered into swapping deals with its business partners to service some operational requirements.

The company is strengthening its foothold in the middle-income market through its Crown Asia projects. Its home designs range in gross floor area from 21 to 74 square meters and the selling price ranges from P150,000 to P2 million.

C&P Homes is more popularly known under the brands Camella and Palmera. The Camella projects focus in Southern Metro Manila, Cavite, Laguna and Batangas regions while the Palmera brands are visible in northeastern Metro Manila, Rizal and Bulacan.

The company also has projects in Cebu, Cagayan de Oro and Pangasinan.