Phoenix: No debt problem
Phoenix Petroleum, owned and controlled by Davaobased businessman Dennis Uy and among the biggest fuel distributor, denied claims that it is facing debt problems of about $12 million (P600 million) in payment to suppliers owned by some of the country’s biggest tycoons.
The listed firm, in a disclosure to the stock exchange, clarified the company has “substantially settled some of these obligations and continues to do so until its completion.”
“Debt is necessary in any business in order to expand and grow it. Just like any other company, Phoenix has its own liabilities that were incurred to fuel and propel its growth,” Phoenix Senior Vice President Raymond Zorrilla said.
According to a newspaper report on Wednesday, Phoenix Petroleum allegedly owes URC-La Carlota, Andrew Tan-owned ProGreen AgriCorp., and Lucio Tan-owned Absolut Distillers Inc. and Asian Alcohol Corp., and Far East Alcohol Corp. late payments amounting to P646.97 million as of end April. At the current exchange rate, the amount is equivalent to about $12 million.
The report also cited a letter from the Ethanol Producers Association of the Philippines (EPAP).
However, Phoenix Petroleum argued the report offered “nothing new and as of date the matter with the concerned suppliers have progressed and negotiations are either ongoing or have been completed by the Company with the parties.”
Debt is necessary in any business in order to expand and grow it.
Phoenix Petroleum pointed out that the economic slowdown brought about by the pandemic and geopolitical issues, specifically the war between Ukraine and Russia, affected the company’s operations.
“These negative effects are felt not only by Phoenix Petroleum but all other businesses in the country and in fact, globally with no exception. These are real challenges that not only Phoenix Petroleum has had to endure in the last two and half years,” it said.
“While recovery is underway, it is not immediate. Despite these, we, in Phoenix Petroleum, are working tirelessly to deliver on our commitments to customers, partners, and stakeholders. We positively believe that we will overcome the headwinds like the rest of the businesses in the country,” it added.