Benguet Corp offers creditors debt settlement

MANILA, Philippines - Benguet Corp. has made specific and firm proposals for the settlement of its debt, approximately amounting to P1.5 billion, to the creditors of record through the PNB Trust Banking Group, as trustee bank. In its letter dated Oct. 30, 2009. Benguet offered to settle its obligations under current market conditions and especially as they relate to the Special Purpose Vehicle (SPV) Law.

As in previous disclosures with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange, Benguet holds the view that notices of default from individual creditors as transmitted in the past months by the PNB are not effective for non-compliance with the process as required by the loan agreements and the SPV Law.

In addition, Benguet received a certification from PNB on Oct. 21, 2009 that it has not been declared in default. Moreover, these notices have now become moot and academic in the light of Benguet’s settlement offer which has been put before the creditors.

Benguet said it feels confident that these debt settlement proposals will lead to an early resolution of this old obligation.