SkyCable inks pact with ABS-CBN, creditors

Sky Cable Corp., the country’s largest cable TV company, said it has reached an agreement with ABS-CBN Broadcasting Corp. and other creditors to extend the maturity of loans by six more years.         

ABS-CBN and other lenders holding more than two-thirds of the cable firm’s outstanding loans, agreed to extend the loan maturity from 2010 to 2016, according to a disclosure filed with the Philippine Stock Exchange (PSC).

ABS-CBN acquired P1.8 billion worth of Central CATV Inc.’s liabilities in cash and debt. The amount purchased accounts for 67 percent of the total outstanding principal amount of CATV’s total outstanding liabilities of P2.74 billion.

The move was in line with efforts to restructure CATV’s debt  to “allow it to focus on its business and capitalize on the market opportunity that exists in the Philippine pay TV industry.”

ABS-CBN had two options for the retirement of Central CATV’s outstanding obligations including the purchase of the debt at a 30 percent discount and swapping the cable firm’s outstanding bonds with those of the broadcasting giant.

The options are contained in an agreement signed in July 2004 among Central CATV, Sky Vision Corp., Philippine Home Cable Holdings Inc., Equitable PCI Bank-Trust Banking, among others.         

ABS-CBN had set aside P900 million for the purchase of Central CATV’s debt in cash.