SBMA to collect P4.7-B from investors who defaulted on loans

Taipei –The Subic Bay Metropolitan Authority (SBMA) will try its best to collect on some P4.7 billion in receivables from several Subic investors who have defaulted on their various loans and have not remitted their required payments to the SBMA.

This was disclosed to newspeople by recently appointed SBMA administrator Armand Arreza who visited Taiwan to convince Taiwanese investors to relocate part of their operations in the Subic Freeport.

One of the biggest problem account of the Subic Freeport, Arreza said, is Freeport Builders Corp. which constructed the highly-publicized APEC Villas used by visiting heads of State, including former US President Bill Clinton, during the Asia-Pacific Economic Cooperation meeting held in Subic in 1998 and the now abandoned Forest Hills housing complex as well as a few other projects.

Freeport Builders alone, Arreza said, accounts for P2 billion of the SBMA’s receivables.

SBMA’s problem with Freeport Builders is complicated by the fact that the firm had loaned from the Development Bank of the Philippines (DBP), Land Bank of the Philippines and Equitable Bank to construct the 21 luxurious APEC Villas.

Freeport was also able to get a guarantee from the Home Guaranty Corp. (HGCC).

However, Freeport Builders defaulted on the loans, resulting in the foreclosure of the properties.

Freeport Builders was also able to sell a couple of villas but never gave the SBMA its share. Since the SBMA still owns the land, it is now locked in legal battle with the banks and HGC over the villas. The SBMA hopes to be able to get back the villas so that it make the villas available for use during the ASEAN Summit in 2007 which will be held in Subic.

The SBMA, likewise, had to forcibly takeover the other housing development project of Freeport Builders known as Forest Hills.

Freeport Builders is owned by a William Cu Un-jieng.

It’s other projects include Edgewater Bay, Times Square and El Kabayo

Another problem account, Arreza said, is that of the Subic Yacht Club owned by former restaurateur Vic-Vic Villavicencio of the famous Triple V Group.

The Subic Bay Yacht Club still owes the SBMA some P80 million in unpaid power bills

Other delinquent accounts include that of the Legenda Hotels which owes the SBMA around P700 million as well as the Crowne Peak Hotel in Cubi.

Arreza admitted that the SBMA is still hoping to reach some kind of settlement with its various delinquent accounts and avoid prolonged court battles.