Bayantel to hire more personnel

MANILA, Philippines - Lopez-controlled Bayan Telecommunications Inc. expects to hire more workers to beef up its workforce with the entry of Ayala-led Globe Telecom Inc. ensuring the viability of the cash strapped firm.

Bayantel said the takeover of Globe has ensured the viability of the telecommunications provider allowing it to increase its current workforce of about 1,100 employees.

“The amended plan is turning out to be the best rehabilitation package in judicial history since the company would be able to continue with its operations, ensuring the continued employment of its present 1,100 labor complement and even allow the hiring of additional workers,” Bayantel said in a statement.

Aside from the continued employment of Bayantel workers, the entry of Globe ensures the continued existence of Bayantel translating to more revenues for the government.

In early September, Branch 158 of Pasig City regional trial court gave Globe the green light to take over Bayantel through the conversion of existing debt into equity.

Marisalve Ciocson-Co, head of legal service of Globe, informed the Philippine Stock Exchange (PSE) last Sept. 3 that the rehabilitation court issued a resolution approving the debt restructuring and the new Master Restructuring Agreement submitted by Globe, Bayantel, and Bayan Telecommunications Holdings Corp.

The lower court has jurisdiction over the corporate proceedings of the ailing telecom provider controlled by Lopez Holdings Corp.

Ciocson-Co said Globe would acquire a 56.6 percent stake in Bayantel through the conversion of 69 percent of Bayantel’s total debt.

“As the largest creditor of Bayantel, Globe intends to convert its debt holdings into 38.3 percent of Bayantel’s equity initially and subsequently convert further amounts of Globe’s debt holdings when relevant regulatory and corporate approvals are obtained,” she added.

In return, she explained that the outstanding principal debt of Bayantel would be reduced by 69 percent to $131.3 million from $423.3 million.

Last May 30, Globe and the Lopez Group asked the rehabilitation court to restructure Bayantel’s $423.3 million debt to prevent default.