Chelsea confident Udenna’s debt issues with banks will be resolved

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CHELSEA LOGISTICS and Infrastructure Holdings Corp., a subsidiary of Udenna Corp., said Sunday it is conIftooth its parent company will be able toIfx” debt issues regarding his Clark Global City project.

“We don’t see it as such according to our management of Udenna,” said the chairman and chief executive of Chelsea Logistics.Ifcer Chryss Alfonsus V. Damuy said in a telephone message to Business worldwhen asked how the notice of default issued against Clark Global City Corp. (CGCC) would affect the other subsidiaries of Udenna.

“Concerns are followed [to] and will be Ifxe,” he added.

Udenna, the flagship company of Davao-based businessman Dennis A. Uy, confirmed on Saturday that it received a notice of default on July 22 from a consortium of banks led by BDO Unibank, Inc., as as majority lender, against CGCC, an afIfLiate of Udenna.

The notice was issued on the basis of “continuing and irremediable events of default” regarding the head lease agreement between Clark International Airport Corp. (CIAC) and Global Gateway Development Corp. (GGDC), which was acquired in 2017 by CGCC.

GGDC holds lease rights to the 177-hectare land at Clark’s civil aviation complex, Clark Freeport Zone, in Pampanga, according to the Philippine Competition Commission.

“In the running, we responded to the consortium banks challenging their conclusion and clarified that, in the circumstances, there was, in fact, no event of default or, at the very least, no event of irremediable default, under the head lease agreement from CGCC or GGDC,” Udenna said.

“GGDC and CIAC are working on an amicable resolution that will not come to fruition [in] any breach of the main lease agreement,” he added.

GGDC’s parent company, Udenna Development Corp., said in 2018 that it would invest $6 billion in the development of Clark Global City. This includes the construction of several office buildings, residential developments, hotels, hospitals, schools, a transport terminal, a sports center and a casino and entertainment complex . — Arjay L. Balinbin

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