Lopez Holdings

 

Benpres confirms compromise planBenpres Holdings Corporation today confirmed that Maynilad Water Services, Inc. and MWSS have agreed to a compromise plan that includes the quasi-reorganization of Maynilad and debt restructuring, to pave the way for a commercially viable and stable water service.

The compromise plan ensures the settlement of all outstanding concession fees owed MWSS and the complete write-off of all of Benpres's US-million-equity in Maynilad. In addition, the plan calls for a partial draw of US million on Maynilad'sUS0-million-performance bond and the restructuring of all its debt. Majority of the creditors have agreed in-principle to the compromise.

The extra-judicial solution was sanctioned by the international Arbitration Panel that earlier heard the case for the concession's termination. In 2003, the Panel concluded, "there is neither a Concessionaire nor an MWSS Event of Termination" and that "the parties undoubtedly have problems in their internal relations but they have to find extra-judicial solutions to them."

Moving forward, Maynilad will submit the compromise plan to its receiver and the Regional Trial Court hearing its petition for rehabilitation, for their concurrence to the consensual agreement. The quasi-reorganization will be submitted to the Securities and Exchange Commission for approval.

Maynilad is also in the process of seeking official approval from its creditor banks for the debt restructuring.

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Lopez Holdings Corporation 
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