The exposure of BDO Unibank Inc. led by bankero Nestor Tan to a company controlled by Davao-based businessman Dennis Uy is secured and a possible default would have no adverse effect on the country’s largest bank.
In a disclosure to the Philippine Stock Exchange (PSE), the listed bank owned by the family of the late retail and banking magnate Henry said confirmed that it has issued a Notice of Default on Clark Global City Corp. (CGCC) in relation to its obligations under the Master Lease Agreement between Clark International Airport Corp. (CIAC) and Global Gateway Development Corp. (GGDC).
“The relevant obligations of CGCC to BDO are secured and a default will not have a material adverse effect on the financial condition and business of BDO,” the bank said.
In a separate statement, Udenna Corp. said it settled the matter ahead of the July 27 deadline set by the consortium of lenders led by BDO, to the satisfaction of the majority lender.
The flagship company reiterated that CGCC or GGDC did not fail to make any interest or principal repayments with its debt to the consortium banks.
“Ultimately, we at Udenna remain steadfast in our commitments and our investments, and we continue to value our partnerships, which enable us to serve the country and the Filipino people,” the company said.