The new logo of United Coconut Planters Bank (Photo credit: Wikipedia)The debt-saddled Uniwide Group will dispose of over 13 hectares in land and building properties, including part of the ambitious Dreamworld project in Naic, Cavite, as part of its repayment scheme to bank creditors.
Among the real estate properties that will be turned over to United Coconut Planters Bank (UCPB) in the dacion en pago arrangement include a 3,111-square meter land with building structures in Tambo, Baclaran; a 14,529-sqm. land area in Calaanan, Caloocan City; and a 112,865-sqm. lot that would have formed the first phase of the development of Dreamworld, a theme park with commercial and amusement centers.
Uniwide, through its 98-percent subsidiary Uniwide Sales Realty and Resources Corp., has forged an agreement with UCPB, a major creditor in its more than P11 billion debt load, to settle P1.044 billion in loan through a dacion de pago involving these properties.
The agreement followed the sale of its convenience store chain, the Uniwide Family Stores, operated by its subsidiary First Paragon Corp. to I-Mart International Corp. for P145 million. This was the first action taken by Uniwide in line with its rehabilitation program overseen by a three-man receivership committee selected by the Securities and Exchange Commission.
The SEC has given the go-signal for the sale of one of Uniwide's prime assets, which was likewise approved by other major creditors Equitable-PCI Bank and Philippine Bank of Communications.
"The interest of FPC's creditors is best served with the proposed conversion of deteriorating assets into cash," the SEC said in its order.
Uniwide investor relations manager Susan Ligerade said while the sale of the store franchise effectively reduces the franchise revenues of the company, "there still remains four Uniwide family store franchises of Uniwide Holdings Inc., which are owned and operated by third party franchisees and from which UHI collects franchise fees."
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