May personal guarantee kasi! Dennis Uy has struggled to pay P8.2B BDO loan, but Tessie Sy has given leeway to Udenna over last two years

Duterte crony Dennis Uy has been having difficulty paying off Udenna’s P8.2 billion loan to BDO Unibank over the last two years.

But the country’s biggest lender chaired by ultra bilyonaryo Tessie has given financial leeway to Uy who is not only a major bank client but also a major partner of the SM group.


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This is based on Udenna’s 2020 audited financial statements submitted in November 2021 and procured by from the Securities and Exchange Commission (SEC).

Udenna’s 2021 AFS is still not available.

BDO agreed to suspend Udenna’s principal and interest payments on its P8.2 billion loan, including a $108 million short-term facility in July 2020, or four months after the Covid-19 pandemic broke out in the country.

It also agreed to delay 80 percent of Udenna’s interest payments due in 2020 to January 2021. Due to cash problems, Udenna could only afford to pay 20 percent of its interest payables at the end of each month in 2020.

BDO likewise approved to defer Udenna’s payment of loan process fees and costs worth P195 million which has been included in the firm’s monthly amortization.

Udenna has been unable to fulfill one of its major debt covenants since the loan became payable three years ago.

From 2019 to 2020, Udenna failed to comply with BDO’s 1:1 minimum debt service coverage ratio which indicates whether a company has enough cash flow or income to pay its debts.

Udennas’s auditor, Punongbayan & Araullo (P&A) Grant Thornton, said the company is confident BDO would grant its request to waive the DSCR requirement.

“The company has been up to date in its servicing of the loan and has not received any written notice (as of the filing of the 2020 AFS) that the loan is due and demandable…The company also continued to negotiate with the lender bank to refinance or restructure the loan or change the covenant provisions,” P&A said.

BDO granted a loan to Udenna in 2018, the same year Uy won the third telco franchise (which required a P24 billion bond) after all other bidders were disqualified or did not make an offer.

The loan is secured by a personal guarantee from Uy, including P667 million worth of 2GO Group shares he owned through KGLI-NM. SM investments bought out Uy in 2GO in June 2021.

The alliance between Uy and Sy has turned rocky when BDO issued a notice of default “on grounds of continuing and irremediable events of default” against Udenna’s subsidiary, Clark Global City, which is developing the 17-hectare central business district in Clark Freeport.

Udenna said it paid the $4.8 million owed by its subsidiary to its landlord, Clark International Airport Corp.

ERC to look into complaints of overcharging by power firms

Numerous complaints on increasing electricity rates have prompted the Energy Regulatory Commission (ERC) to launch an investigation on the accuracy and reasonableness of the generation rates being passed on by distribution utilities (DUs) to its consumers.