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December 4, 2007 |
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BENPRES HOLDINGS: Buys Debts for PHP32.3 Million and PHP5.8 Mil. Benpres Holdings Corp. and Lopez Inc. have purchased a total of US$43 million worth of debt held by Asian Infrastructure Fund, and PHP$9.5 million held by 5 LTCP holders. The AIF debt was bought for US$32.3 million, with Benpres paying US$25.8 million and Lopez Inc. contributing US$6.4 million. Benpres bought the LTCP debt for PHP5.8 million. Headquartered in Pasig City Philippines, Benpres Holdings Corporation -- http://www.benpres-holdings.com/ -- is a 56.22%- owned subsidiary of Lopez, Inc. Both entities were incorporated in the Philippines. Benpres Holdings and its subsidiaries are mainly involved in investment holdings, broadcasting and entertainment, and water distribution. The company's associates are involved in telecommunications, power generation and distribution, cable television, real estate development and infrastructure. Starting in 2002, Benpres Holdings defaulted on its principal and interest payments on its long-term direct obligations and guarantees and commitments. As proposed in the company's Balance Sheet Management Plan, all of Benpres' liabilities were computed as of May 31, 2002. Also as proposed in the BSMP, the company would make good faith semi-annual payments on its direct and contingent obligations. The first payment was made on December 2, 2002, and succeeding payments were made in June and December 2003, June and November 2004, and May and November 2005. Going Concern Doubt After reviewing the company's financials for the year ended Dec. 31, 2006, Ma. Vivian C. Ruiz at Sycip Gorres Velayo and Co. raised significant doubt on the company's ability to continue as a going concern, which depends on the success of the company's Balance Sheet Management Plan. As of Dec. 31, 2006, the company's total assets stood at PHP14.87 billion, while total stockholders' equity at year-end increased by 9%, reducing the deficit to PHP9.23 billion from PHP10.14 billion, given the PHP4.62 billion net income posted in 2006. In 2006, Benpres made semi-annual interest payments on its direct and contingent liabilities that are covered in its proposed Balance Sheet Management Plan. The company continues to negotiate a debt restructuring with its creditors. |
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