Globe asks court for Bayantel's debt restructuring

MANILA, Philippines -- Local carriers Globe Telecom and Bayan Telecommunications have filed a motion with a court seeking to restructure Bayantel's debt of $423.3 million.

Following Globe's tender offer for the Bayantel debt in 2012, Globe currently holds approximately 96.5 percent of the total financial indebtedness of Bayantel. The joint motion aims to achieve a rehabilitation of Bayantel.

Globe disclosed Bayantel's operations from traditional fixed line services, growing competition, have not generated sufficient revenue to continue making the debt payments under its present rehabilitation plan.

If approved by the court, Globe expects the restructuring would lessen the debt to about $131.3 million.

Globe believes such a restructuring would allow them to further strengthen collaborative efforts with Bayantel regarding local exchange networks, corporate data and broadband businesses.