By Zinnia B. Dela Peña (The Philippine Star) Updated November 25, 2009 12:00 AM
MANILA, Philippines - Gatchalian-led hotel operator Waterfront Philippines Inc. plans to borrow up to P2 billion for the restructuring of its loan with the Philippine National Bank and the renovation of its hotels.
In a disclosure to the Philippine Stock Exchange, Waterfront said its shareholders approved a board resolution authorizing the company to apply for loans of up to P2 billion.
Waterfront earlier remitted P826 million to the Philippine National Bank as complete payment of its outstanding obligation provided under their court-supervised compromise agreement. This brought the total amount paid by Waterfront to PNB to approximately P2.9 billion over the last eight years from the original loan amount of P780 million in 1997.
The original loan doubled its peso amount upon conversion as a result of the devaluation of the peso
The compromise deal forged in Nov. 21 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.
Part of the loan will be used to upgrade the company’s hotels in Cebu City, Mactan City, Davao City and Manila.
Shareholders also approved a plan authorizing Waterfront to convert up to P600 million of its advances to Waterfront Cebu City Casino Hotel Inc. into common shares of Waterfront Cebu City Casino Hotel Inc. at par value.
The settlement of the outstanding loan will allow Waterfront to focus on improving its hotel facilities and building inroads into new and emerging tourist markets.
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