Lopez Holdings working to resolve debt issue
Lopez Holdings Corporation (PSE: LPZ) continues to work on resolving issues related to its remaining P1.8 billion in unrestructured debt.
At today’s annual meeting, Lopez Holdings president Salvador G. Tirona told shareholders the company is in the final stretch of the financial restructuring process it has pursued for the last nine years.
Lopez Holdings began restructuring US0 million in debt in 2002, after investees in telecom and water distribution were seriously crippled by the Asian financial contagion in 1997. The sale of stakes in toll roads, property development and a tertiary hospital helped the company recover its bearings in the last five years. The company also began buying back some debt, using dividends provided by successful investments in media/broadcasting and power generation. As of March 31, 2011, unrestructured debt was at US million.
The major investments of Lopez Holdings are in media and communications through ABS-CBN Corporation (ABS, ABSP) and in sustainable energy development, infrastructure, property development and green manufacturing through First Philippine Holdings Corporation (FPH, FPHP). ABS-CBN is the country’s largest multimedia content provider and drives synergies with affiliate Sky Cable Corporation and sister company Bayan Telecommunications, Inc.
FPHC, a minority shareholder in Meralco (MER), is the parent company of leading clean and renewable energy advocate First Gen Corporation (FGEN), which in turn controls geothermal energy pioneer Energy Development Corporation (EDC). First Philec Solar Corporation, a private entity, leads and manages FPH’s manufacturing portfolio.
Tirona said the company looks forward to a successful closure of its debt restructuring exercise “in the shortest time possible” so that Lopez Holdings can begin providing returns to shareholders on a sustainable basis.
