Waterfront has until February 2009 to settle PNB acct

Gatchalian-led Waterfront Philippines Inc. has until February next year to settle all its obligations to Philippine National Bank, according to a disclosure filed with the Philippine Stock Exchange.

Based on a compromise deal signed last Nov. 21, Waterfront shall pay P40 million upon execution of the agreement, with the balance of P739.6 million plus interest and legal expenses to be settled on or Feb. 19, 2009.

“However, this is still subjudice or awaiting adjudication/approval by the court,” Waterfront said.

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

The loan was originally denominated in US dollars at $30 million, equivalent to P789 million at the time of inception in 1997. The loan subsequently doubled as a result of the depreciation of the Philippine 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 1500 rooms, employs 1500 employees, and has over 41,000 square meters of convention and gaming space. It houses the country’s largest gaming facilities.