Bayan Telecommunications Inc. said there would likely be no lay-offs following its takeover by the Ayala Group’s Globe Telecom, a statement on Friday showed.
Bayantel said the amended plan was turning out “to be the best rehabilitation package in judicial history since the company would be able to continue with its operations, ensuring the continued employment of its present 1,100 labor complement and even allow the additional hirings.”
Under the original rehabilitation plan, Bayantel has until 2023 to pay its debts but, with the entry of Globe Telecom as a white knight, Bayantel would already be able to operate.
The amended rehabilitation program has already been approved by the court under which the company voluntarily underwent rehabilitation.
The Pasig regional trial court has earlier issued a resolution approving the debt-restructuring plan and the new master restructuring agreement submitted by Globe, Bayantel and Bayan Telecommunications Holdings Corp.
Under the plan, Globe would acquire a 56.6-percent stake in Bayantel through the conversion of 69 percent of Bayantel’s total debt.
Bayantel noted that the new restructuring program would make it immediately “productive” unlike under the original plan where creditors would have to wait until 2023 to get paid.
The Globe debt initiative would pare down the outstanding principal debt of Bayantel by 69 percent to $131.3 million from $423.3 million. Bayantel’s outstanding debt stood at $497 million when it was placed under corporate rehabilitation in 2004. Miguel R. Camus