Udenna eyes deal with lenders

Udenna Corporation has initiated efforts to settle its obligations with a consortium of lenders led by Banco de Oro Unibank after receiving a foreclosure notice on its Clark Global City Corp. (CGCC) or Clark International Airport Corporation (CIAC).

In a statement, Udenna Group spokesperson Raymond Zorilla said the conglomerate is working on a deal and "assured GGDC (Global Gateway Development Corp.), and CIAC will work on an amicable resolution that will not violate Master Lease Agreement." GGDC owns the leasehold rights to the CICC.

"In contention, we replied to the consortium banks to dispute their 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 the Master Lease Agreement on the part of CGCC or GGDC," Zorilla added.

Udenna issued the statement as it confirmed reports the Dennis Uy-led CIAC received a Notice of Declaration of Default from the banks led by the BDO Unibank, Inc. but denied it is on the brink of a debt default.

Default notice issued

Reports circulated over the weekend that BDO sent a default notice to Udenna, but Zorilla denied the company would default on its loans. The lenders gave Udenna until Tuesday to respond favorably to the notice or face foreclosure.

"Last night, 22 July, we received a Notice of Declaration of Default from a consortium of banks against CGCC on the grounds of "continuing and irremediable Events of Default" concerning the Master Lease Agreement between CIAC and GGDC," Zorilla added.

Udenna bought the 177-hectare CGCC from a Kuwait Group using a 10-year loan headed by BDO, with interest between 7.61 percent and 8.98 percent.