Roxas & Co. gets repayment extension for P2.6-B loans

PHOTO CREDIT: ROXAS

ROXAS & CO., Inc. has been allowed by local banks to extend its payment period for some P2.6 billion debts.

In a disclosure to the exchange on Tuesday, the company said its creditor banks had approved giving it up to three years as additional grace period to repay its outstanding loans.

The banks are Bank of the Philippine Islands, which it owes P1.6 billion; Robinsons Bank, which it owes P759.4 million; and Asia United Bank, which it owes P188.5 million.

“The restructuring plan reflects the creditors’ confidence in [Roxas & Co.] and the viability of its operations,” it said.

“It provides [the company] sufficient period to generate additional cash flows to significantly reduce debt through operational excellence, the sale of non-core assets, divestment from minority investments, and equity raise from the reissuance of its treasury shares,” it added.

Roxas & Co. operates hotels in Tagaytay and Metro Manila, and a coconut processing plant in South Cotabato.

During the first semester, the company booked an attributable net loss of P341.92 million, larger than the previous year’s P251.64 million, as its revenues were halved to P206.2 million due to disruptions brought by the coronavirus pandemic.

In its quarterly report for the second period of 2020, the company said it had P3.56 billion outstanding loans as of end-June. “Due to the effects of the pandemic, the group is availing the provisions of the Bayanihan Act of 2020 to extend payment of unpaid interest,” it said.

Shares in Roxas & Co. at the stock exchange dipped four centavos or 3.33% to P1.16 each on Tuesday. — Denise A. Valdez





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