PNB, Waterfront agree on P740-M debt settlement

The Lucio Tan-owned Philippine National Bank (PNB) and William Gatchalian’s Waterfront Philippines Inc. have reached an agreement on the latter’s settlement of a P740-million debt to the country’s fourth largest private bank.

In a disclosure to the Philippine Stock Exchange, Waterfront said the settlement agreement was signed last Nov. 21.

On Nov. 4, PNB filed a petition for foreclosure against Waterfront Mactan Casino Hotel and Waterfront Cebu City Casino Hotel for the hotel chain’s failure to pay its debt.     

Waterfront was referring to the petition of foreclosure PNB filed against the Cebu-based casino hotels.

The loan was originally denominated in dollars, at $30 million, equivalent to a mere P789 million at the time of the loan availment in 1997. The loan subsequently doubled its peso amount upon conversion as a result of the devaluation of the peso.

Waterfront is the country’s largest Filipino-owned and managed first class hotel chain. Aside from its two hotels in Cebu, the company owns the Manila Pavilion Hotel and Casino and the Waterfront Insular Hotel Davao.

Cumulatively, Waterfront operates close to 1,500 rooms, employs 1,500 employees, and has over 41,000 square meters of convention and gaming space. It houses the country’s largest gaming facilities in the casino and gaming operations of the state-run Philippine Amusement and Gaming Corp. (Pagcor). — Zinnia dela Peña