Benguet buys back additional 28.5% of secured debt

MANILA, Philippines - Benguet Corp. has bought back an additional 28.5 percent of its secured debt at 30 percent of its purchase price.

In a disclosure to the Philippine Stock Exchange, Benguet said the retirement of additional debt brings the total debt it acquired back from secured creditors to 79.5 percent.

Aside from this, Benguet disclosed that it has also repurchased 16 percent of its unsecured debt.

The move is in line with continuing efforts to settle all bank debts at 70 percent discount or to restructure its remaining obligation.

Benguet borrowed P906.44 million and $48.27 million from 23 banks in December 1993, but special purpose vehicles have since bought the debt notes.

The country’s oldest miner earlier said it was planning to sell its rights to the Kingking copper-gold project by the end of the third quarter so it can buy back up to 90 percent of its P1.2-billion debt.

Company shareholders approved in August a plan to transfer Benguet’s interest in the Kingking project located in Compostela Valley in Mindanao to St. Augus-tine Mining Ltd.

Under the planned deal, St. Augustine would pay Benguet a still unspecified amount – estimated at $20 million to $40 million – a portion of which Benguet would use to buy back/offset about 90 percent of its outstanding debt papers.