GGRAsia – Udenna says settled debt obligation of PH Resorts affiliate

Udenna says settled debt obligation of PH Resorts affiliate

Jul 26, 2022 Newsdesk Latest News, Philippines, Top of the deck

Udenna Corp, parent of Philippine casino developer PH Resorts Group Holdings Inc, said in a statement on Monday that it had “settled the matter” that day, regarding what had earlier been described as “certain obligations” of Global Gateway Development Corp towards Clark International Airport Corp.

Global Gateway Development Corp is an affiliate of PH Resorts. The latter had said in an earlier Monday filing that a declaration of default had been issued on Friday (July 22) by a consortium of banks led by BDO Unibank Inc, as majority lender.

It concerned a US$4-million obligation of Global Gateway Development Corp towards Clark International Airport Corp, but which PH Resorts had clarified was “due only on Wednesday, 27 July”.

Udenna – a conglomerate led by entrepreneur Dennis Uy – said in its subsequent Monday press release that the matter had been settled “prior to the mandated deadline, and to the satisfaction of the majority lender and the consortium banks”.

The statement said that Clark Global City Corp, which is a subsidiary of Udenna, or Global Gateway Development Corp “did not fail to make any interest or principal repayments with its debt to the consortium banks.” It added: “Thus, in contention, Clark Global City Corp replied to the consortium banks to dispute the default conclusion, and clarified that, under the circumstances, there has been, in fact, no event of default or, at the very least, no irremediable event of default,” under a master lease agreement with Clark International Airport Corp.

Udenna added: “We hope this clarifies this matter, and we appreciate the continued support provided by consortium banks to Udenna Corp. We have always believed that they positively agree to our approach on this matter.”

Several media reports had previously said the debt related to a real estate development known as Clark Global City.

Distinctly, PH Resorts’ unit PH Travel and Leisure Corp, has an entity called Clark Grand Leisure Corp, which is due to develop the Base Resort Hotel and Casino in Clark, Pampanga, on the country’s main island, Luzon.

A PH Travel and Leisure unit, Lapulapu Leisure Inc, is responsible for the under-development Emerald Bay Resort Hotel and Casino in Cebu.