Lopez Holdings

 

Annual Stockholder's Meeting Press Statement
Introduction
Management began a thorough strategic and operational review of the group during 2001 to address the financial and operational issues that would affect the group this year. Part of this process involved the appointment of Credit Suisse First Boston ("CSFB") as financial adviser to the group. As a result of the review, management and the adviser formulated a Balance Sheet Management Plan ("Plan").

The Plan
Benpres' Balance Sheet Management Plan aims to address maturing financial obligations as well as to restore Benpres' long-term financial health. Specifically, the Plan requires Benpres to reduce debt, raise capital through asset divestiture and unburden itself from further investments and capital calls on its infrastructure projects. The Plan requires Benpres to reschedule liabilities to better match its dividend receipts from established companies such as ABS-CBN and First Holdings. The power generation group under First Holdings has started to make strong revenue contributions.

Benpres also plans to strategically downsize its non-core assets to meet its liabilities. While Benpres is asset-rich, asset prices are currently depressed and sale at these prices will not be in the best interest of all Benpres' stakeholders. An orderly divestment program seeks to balance the interests of all stakeholders as we prepare to address all our obligations and nurture our subsidiaries.

As part of the Plan, we also continue to evaluate refinancing options.

In the end, Benpres will emerge a leaner, less leveraged and more focused entity.

Outlook
Much of the progress that can be made in 2002 is dependent on an improvement in the global and regional economic climate. Equally important for our public service businesses will be the speed with which various regulatory approvals are given.

We are currently in preliminary discussions with creditors and will update shareholders on a periodic basis on the results of these discussions.

The philosophy of the Lopez Group remains the provision of high quality services to the Filipino people who are entitled to the best we can deliver. We thank our shareholders, employees, creditors and customers for their continued support.

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CONTACT US

Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

  • Trunkline: (632) 8878 0000
  • Fax: (632) 8878 0000 ext 2009
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