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CJHDevco seeks 4th restructuring

[ ] December 6, 2011

CAMP John Hay Development Corp. (CJHDevco) led by the Fil-Estate Group is seeking a new round of restructuring – its fourth – on unpaid rentals on Camp John Hay in Baguio City.

Arrears now total P2.6 billion.

Fil-Estate may not get what it wants this time.

Arnel Casanova, president and chief executive officer of the Bases Conversion Development Authority (BCDA), yesterday said the agency is not amenable to a new restructuring and is "looking at options, including legal action" to force CJHDevco to pay up.

CJHDevco a few weeks ago wrote the agency asking for a new restructuring on an ongoing restructured schedule of payment for back rentals. Past due and demandable has hit P581 million to date.

Casanova said since 2008, CJHDevco has not made any new payment on the already restructured debt.

"We are studying our options. Despite its commitment Fil-Estate has not made (any payment). The current restructuring was already fourth," CJHDevco said.

The P581 million is over and above the P2.4 billion that that CJHDevco owes the BCDA based on a restructuring memorandum of agreement in CJHDevco signed in 2008 for the lease of 247 hectares in the John Hay special economic zone.

BCDA said the Sobrepena-owned CJHDevco ignored anew BCDA’s collection demands despite admonition that its indebtedness would continue to balloon unless paid on time.

Santiago said CJHDevco has been snubbing demand letters from the state-run BCDA, as well as reminders from the Baguio City government, which was supposed to get 25 percent of the private land developer’s rental payments as provided for under a tripartite agreement among the three entities.

Under its thrice-restructured lease contract with the BCDA, the CJHDevco would develop 247 hectares of the 697-hectare Camp John Hay into a mix residential-commercial-industrial use to the tune of P2.6 billion.

The original lease contract was inked by both parties on Oct. 19, 1996 that was revised on July 14, 2000, then again on July 18, 2003, and yet again on July 1, 2008, which stipulated that the CJHDevco would pay its outstanding debts amounting to P2,686,481,644 in lease rentals, inclusive of interest.

CJHDevco paid P100 million upon signing of the 2008 restructuring memorandum of agreement, plus P180.3 million worth of assets as dacion en pago settlement, thereby bringing down the private developer’s debt to P2.4 billion.

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