RCI gets relief from creditors

Three creditors of Roxas & Co. Inc. (RCI) have agreed to stretch out P2.6 billion worth of loans contracted by the publicly lis­ted holding firm in consideration of business challenges arising from the eruption of Taal Volcano and the ongoing COVID-19 pandemic.

In a disclosure to the Philippine Stock Exchange on Tuesday, RCI said it had “received the full support of its creditor banks, which recently approved to grant up to three years in additional grace period” for the repayment of these debts.

Among the banks that agreed to the arrangement was Ayala-led Bank of the Philippine Islands (BPI), which has a loan of exposure of P1.6 billion. The others were Robinsons Bank and Asia United Bank, which lent P759.4 million and P188.5 million, respectively.

“The restructuring plan reflects the creditors’ confidence in RCI and the viability of its operations,” RCI said.

RCI said this debt restructu­ring would give it “sufficient period to generate additional cash flows to significantly reduce debt through operational excellence, the sale of noncore assets, divestment from minority investments and equity raise from the reissuance of its treasury shares.”

The group’s hospitality businesses include hotel operations of the Anya Resort in Tagaytay and its four Go Hotels in the National Capital Region. It also operates a coconut processing facility in South Cotabato that produces export quality coconut cream, virgin coconut oil and coconut water concentrate.

Cezar Consing, president of BPI and Bankers Association of the Philippines, earlier said banks in the country were prepared to extend maturities to clients in need during this pandemic. He said banks would be more accommodating during this extraordinary period.

As the COVID-19 pande­mic ushered in a difficult period for consumers and businesses that could lead to potentially higher loan defaults, a number of banks earmarked hefty loan loss provisions this year.

RCI, for its part, has incurred a larger net loss of P341.92 million in the first half compared to a net loss of P251.64 million in the same period last year. Second quarter net loss amounted to P195.12 million, larger than the net loss of P172.64 million in the same quarter last year.

Consolidated revenue in the second quarter fell by 50 percent year-on-year to P206.2 million. Revenues were down across all business units as the COVID-19 pandemic resulted in the temporary closure of all hotel operations in Anya Resort Tagaytay and Go Hotels in Metro Manila. Its coconut processing plant in Tupi, South Cotabato, had likewise been shut down. INQ