Publicly-listed miner Benguet Corp. (BC) declared a cash dividend of P0.20 per share of common stock and P0.28 per share of convertible preferred stock, payable starting Dec. 10, with a record date of Nov. 14.
This marks the first time in 35 years that BC will pay dividends to stockholders and the first management action after the company became debt-free following the resolution of all its outstanding debts.
The signing of a mutual rescission agreement with regard to its restructured loans, upon approval of the board of directors, ended a three-decade-long debt and mortgage indenture.
The deal was structured with its remaining creditors, Wilshire Business Consulting Corp. and Armstrong Capital Holdings Corp., which opted for direct settlement and leveraging for investment of their respective debts.
“The termination of the 1993 Debt Restructuring Agreement and Mortgage Trust Indenture is the culmination of management’s long and hard struggle to free the Company from its outstanding debt liabilities that have for more than 30 years subjected it to hardship and constraint of operation,” said BC president Lina Fernandez.
This year’s positive development on the debt issue relieved the company from the negative restrictions of the restructured loans that have limited its ability to grow in the past and to deliver on its promise to bring value to shareholders.
Now with improved creditworthiness and a clean balance sheet, BC can resume capital market activities and engage investors in undertaking new projects and expansion of existing operations that will create new revenue streams for the company and will hopefully lead to future dividend payouts.
As BC embarks on a new chapter, the company said it would continue to deepen its foothold in the mining sector as well as build up its portfolio in new business ventures like agriculture, real estate, bulk water and renewable energy.
