The Court of Appeals has approved a compromise deal between businessman Jose Go’s bankrupt Ever Gotesco and government-owned Land Bank of the Philippines, which slashed P252 million off his original debt.
In a November 24, 2022 decision, the court’s Special Sixteenth Division acknowledged the new agreement between the two parties in settling Ever Gotesco’s outstanding loans. The compromise amount is set at P73 million, representing a principal amount of P50 million plus interest of P23 million.
The compromise amount is a huge reduction from Go’s original payables worth P325.141 million.
Ever Gotesco was told to settle P3.65 million upfront and divide the balance in a five-year repayment plan, covered by post-dated checks. Missing payments would earn a 24% annual penalty rate.
The local mall chain earlier announced its rebranding to “Everwoods Green Resources and Holdings” under new owner Antonio Tiu.