By Zinnia B. Dela Peña Updated February 24, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines - Gatchalian-led Waterfront Philippines Inc. has fully settled its loan obligation with the Philippine National Bank (PNB).
“The Corporation has successfully generated funding to pay in full its loan obligation to PNB which was subject of its Settlement Agreement dated 21 November 2008…,” Waterfront said in a disclosure to the Philippine Stock Exchange (PSE).
The compromise deal entailed the payment by Waterfront of the principal amount of P739.6 million plus interest and legal expenses on or Feb. 19, 2009.
The agreement prevented the foreclosure of the 562-room Waterfront Cebu City Hotel & Casino, the biggest in Cebu City and Waterfront’s flagship property, and the 167-room Waterfront Airport Hotel & Casino Mactan.
The loan was originally denominated in dollars at $30 million, equivalent to a mere P789 million at the time of inception in 1997. The loan subsequently doubled its peso amount upon conversion as a result of the devaluation of the Philippine peso.
Waterfront is the country’s largest Filipino-owned and managed first class hotel chain. Aside from its two hotels in Cebu, the company owns the Manila Pavilion Hotel and Casino and the Waterfront Insular Hotel Davao.
Cumulatively, Waterfront operates close to 1,500 rooms, employs 1500 employees, and has over 41,000 square meters of convention and gaming space. It houses the country’s largest gaming facilities.