In the Annual Stockholders’ Meeting held on June 9, 2006, Benpres Holdings Corporation President and COO Angel S. Ong provided the following updates on its on-going Debt Restructuring:
- Benpres’ updated debt restructuring proposal set sustainable debt level at US$200 million, half of the current debt level of US$400 million.
- Sustainable debt is proposed to be paid in 10 years from dividends provided by core investments in the power and media industries.
- Unsustainable debt of US$200 million is proposed to be swapped for assets. Assets identified for a debt-for-asset swap are shares in First Philippine Infrastructure Development Corporation and shares in Digital Telecommunications Philippines, Inc.
- Commercial term sheet negotiations are expected to start in the third quarter of 2006.
- Financial advisers to Benpres are Ferrier Hodgson Corporate Advisory (WA) Pty Ltd and legal advisers are White and Case.
At the Benpres Annual Stockholders’ Meeting held on June 14, 2007, the company stated that it is in the process of amending the terms of the debt restructuring proposal which was submitted to the creditors in 2006.
The upbeat financial market condition would allow for some improvement in the terms for discussion with the creditors.