“BDO Capital – which acted as the financial advisor for the transaction – played an instrumental role in assuring the financial partners of the long-term, mutually beneficial advantages that can be realized from the agreement,” said Megawide in a statement.
As of March 29, Megawide said only BDO Unibank had approved its request for a restructuring of the P23.9 billion loan with its other debtors — Bank of the Philippine Islands, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Company, Philippine National Bank and Asian Development Bank — were still undecided.
Megawide said BDO Capital made a “mutually acceptable proposition” to amend the original schedule of the loan used to develop Mactan-Cebu International Airport (MCIA) six years ago. Aside from stretching the payment period, Megawide appealed to its debtors for a permanent waiver on the ebt service coverage ratio (DSCR) breach, and relaxing the debt to equity ratio from 70:30 to 75:25.
Megawide said the debt restructuring deal would “preserve P4.5 billion in cash, initially earmarked for principal debt servicing.”
“This (P4.5 billion) will be amortized throughout the life of the loan, with bulk of payments scheduled towards 2027-29,” said Megawide.
Saavedra was forced to seek a debt restructuring after Megawide could not pay its maturing obligations in 2020, specifcially the P23.9 billion Mactan airport loan for which he and his Indian partner, GMC, availed of a 120-day moratorium on debt payments.
While he was begging banks to give Megawide some financial leeway due to its cash problems, Saavedra was aggressively pursuing his bid to get the P109 billion rehabilitation contract for the Ninoy Aquino International Airport. Saavedra’s original proponent status was revoked after the National Economic and Development Authority ruled that Megawide’s equity was insufficient to carry out such a massive project.