Creditors accept Globe offer to buy Bayan debts
MANILA, Philippines—The Ayala group’s takeover of financially distressed Bayan Telecommunications Inc. is likely pushing through following huge acceptance of the latter’s creditors of Globe Telecom’s offer of a way out.
In an update regarding its tender offer for Bayantel obligations, Ayala-led Globe Telecom said notes representing about 94.10 percent of the aggregate remaining principal amount of the 13.5-percent senior notes originally due in 2006 and other loans of Bayan had been tendered as of the end of last week.
Globe earlier launched an offer to purchase for cash any and all of the notes and other outstanding loans of Bayantel and subsidiary Radio Communications of the Philippines Inc. (RCPI).
The loans are subject to the court-administered rehabilitation plan of Bayantel and RCPI which is ending in 2023.
“Globe is very pleased with the preliminary results of its tender offers for the restructured debt of Bayantel and RCPI. Creditors of Bayantel and RCPI have demonstrated overwhelming support for Globe’s tender offers,” Globe chief financial officer Alberto de Larrazabal said.
As of Dec. 6, notes representing 91.66 percent of the aggregate remaining principal amount of notes had been tendered and not withdrawn. Also, about 98.21 percent of the aggregate remaining principal loans of Bayantel had been tendered and not withdrawn.
For RCPI, about 85.07 percent of the remaining principal amount of its loans had been tendered and not withdrawn.
The overall “acceptance level” is 94.10 percent. All tenders still have to be verified by Globe.
Globe previously sweetened its offer to buy Bayantel’s debts to encourage creditors to let go of their holdings in the Lopez-led firm.
Creditors are now entitled to a maximum consideration of $310 for every $1,000 worth of debt.
