Biggest corporate default averted: Duterte crony Dennis Uy settles debt issue involving Clark Global City

Duterte crony Dennis Uy is not walking away from his financial obligations.

The Davao-based businessman’s listed holding company Udenna Corp. disclosed Monday that it had settled the debt of its wholly owned subsidiary Clark Global City Corp. (CGCC) “to the satisfaction” of its creditor banks.

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“In relation to various reports recently published, which involved [CGCC]. Clark International Airport Corporation (CIAC), and a consortium of banks led by BDO Unibank, we wish to announce that Udenna settled the matter today, 25 July 2022, prior to the mandated deadline, and to the satisfaction of the majority lender and the consortium banks,” the company said in a statement.

CGCC received on July 22 a notice of default from a group of banks led by BDO allegedly due to unsettled lease payments to CIAC.

Udenna insisted that “there has been no event of default or, at the very least, no irremediable event of default, under the master lease agreement on the part of CGCC” as it pointed out that the loan obligations with CIAC were due only on Wednesday (July 27).

“To be clear, CGCC or GGDC (Global Gateway Development Corporation, a subsidiary of CGCC) did not fail to make any interest or principal repayments with its debt to the consortium banks, and thus, in contention, CGCC replied to the consortium banks to dispute the default conclusion,” Udenna said.

“The financial liability stated was not a liability to the consortium banks, but an obligation of GGDC to CIAC, which, as stated above, has already been settled,” it added.

Last May, ultra bilyonaryo Ricky Razon agreed to buy out Uy’s casino projects in Clark and Cebu.

Uy likewise sold an office complex in Clark Global City to Aeropark Development Philippines for an undisclosed amount.

Nevertheless, Udenna said it remains committed to its investments as it continues to value its partnerships.

CGCC holds the leasehold rights to the 177-hectare Clark Global City in the Clark Freeport Zone, Pampanga until 2085. The property will be developed into a masterplanned, mixed-use hub in the heart of Central Luzon.

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