Benpres set to conlude deal with creditors

The Lopez group’s flagship company Benpres Holdings Corp. expects to finalize a debt restructuring agreement with its creditors by the end of the year.

From $548 million last year, the company’s total debt has gone down to about $400 million, Benpres president and chief operating officer Elpidio Ibañez said.

Based on its proposal, Benpres is seeking to stretch payments of its debt over a 10-year period The company earlier proposed a 10-year debt-repayment program whereby Benpres, at the end of 10 years is expected to either fully pay creditors or at a level that is quite manageable. However, there are still issues on security and pricing the company needs to resolve with creditors.

Benpres hopes to cut its total debt to $403 million, once its exit from west zone water concessionaire Maynilad Water Services, Inc. is completed.

Benpres, whose finances were hit hard by sour investments in Maynilad and telephone firm Bayan Telecommunications Inc., is negotiating with banks on the debt restructuring on a "pari-passu" or equal-terms basis, without preference to be given to secured creditors.

At present, Benpres is paying about $3 million in interest semi-annually.

Out of the company’s debts, $139 million are Benpres’ own and $335 million are debts of subsidiaries that Benpres has guaranteed – BayanTel ($210 million) and Maynilad ($145 million).

Benpres continues its asset disposition program in line with efforts to further pare down debts as it aims to build a new and revitalized Lopez Group of Companies.

Among the company’s assets that may be up for sale are its interest in Manila North Luzon Tollways Corp. (MNTC) and Bayan Telecommunications Holdings Corp. (BayanTel).