Waterfront seeks 60-day extension on Mimosa Leisure bid payment

Gatchalian-owned hotel operator Waterfront Philippines Inc., the winning bidder for the 215-hectare Mimosa Leisure Estate in Clark, Pampanga, has asked Clark Development Corp. (CDC) to extend for 60 days the deadline for the payment of its financial obligations.

In a notice to the Philippine Stock Exchange, Waterfront said it has filed an appeal with the CDC to extend the payment deadline for 60 days or until such time a legal and binding solution shall have been worked out with the government agencies affected.

In its request, Waterfront cited the need to resolve the issuance of a casino license by the Philippine Amusement and Gaming Corp. (Pagcor) and the joint efforts and cooperation of both Waterfront and CDC in obtaining said license and in pursuing the successful privatization of the Mimosa complex.

Under a deal signed in July, Waterfront was required to pay P770-million upfront within 90 days after the approval of the agreement.

CDC earlier said Waterfront would infuse P1 billion over a period of five years to make Mimosa more appealing to foreign and local investors.

In preparation for its takeover of the complex, the company put up Waterfront Leisure Corp. which has been initially capitalized at P10 million.

Waterfront aims to restore the Mimosa estate to its old glory as it anticipates the influx of tourists once the open skies policy in Clark is signed. The complex covers the Holiday Inn hotel, a 38-hole world-class golf course, a clubhouse, some 200 Montevista villas and a Pagcor-operated casino.

Under the open skies policy, national carriers would have the right to fly over a country without landing, stop in a country for refueling or maintenance without transferring passengers or cargo, and carry passengers and cargo from one country to another and vice versa.

Waterfront, the only hotel chain that has a presence in the key cities of the country, has a 2,000-square meter lot in Ortigas and another 3,000-sqm. property in Buendia, Makati.