Primetown to restructure as Eurovek Land Inc
Primetown Property Group Inc. is raising its capitalization to facilitate the entry of Eurovek Building Solutions Inc., a company engaged in the manufacture of alternative home and building construction materials.
In a disclosure to the Philippine Stock Exchange, Primetown said it has entered into a memorandum of agreement with Eurovek for the subscription to one billion shares, representing the entire increase in the capital stock of the cash-strapped property firm.
Eurovek, headed by its president Miguel R. Manzano, manufactures and supplies UPVC doors and windows and distributes fittings for sanitary system.
Primetown said its board also approved the reduction of the par value of existing shares from P1 to one centavo and change of its corporate name to Eurovek Land Inc.
The company’s board likewise approved a plan to increase the number of directors from five to seven subject to the amendments of Primetown’s articles of incorporation.
Primetown was the developer of the first condotel project in the
Primetown crumbled under the weight of higher loan payments and costs as a result of the devaluation of the peso against the US dollar at the height of the 1997 Asian financial crisis, leaving four projects unfinished — the Gold Coast Tower, a 28-story hotel condominium in Mactan, Cebu; the Meditel Project, a 35-story medical hotel condominium on Shaw Blvd. in Mandaluyong; Conservatorium in Fort Bonifacio, Taguig and the Diamond Head, a resort hotel in Boracay Island, Aklan.
The Meditel project has since been taken over by a partner, while the land in
As a result of the adverse effects of the currency crisis, Primetown entered into restructuring and dacion en pago (payment in kind) arrangements to reduce its debts from over P3 billion in 1998 to just P549.9 million in principal, depleting its financial resources.
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