Udenna Corp., the holding company of businessman Dennis Uy, on Saturday denied defaulting on loans of unit Clark Global City Corp. and said it will settle its obligations with Clark International Airport Corp.
Udenna said in a statement it received a notice of declaration of default from a consortium of banks led by BDO Unibank Inc. as the majority lender against CGCC.
Udenna said the foreclosure order was based on the grounds of “continuing and irremediable events of default” in relation to the master lease agreement between Clark International Airport Corp. and Global Gateway Development Corp.
Udenna, in its reply, disputed the claims of the bank consortium.
“Under the circumstances, there has been, in fact, no event of default or, at the very least, no irremediable event of default, under the master lease agreement on the part of CGCC or GGDC,” the company said.
“GGDC and CIAC are working on an amicable resolution that will not result in any violation under the master lease agreement. We trust that we have been able to clearly state our position on the matter,” it said.
CGCC acquired in 2017 GGDC, which holds the leasehold rights on a 177-hectare property in Clark Freeport Zone.
The property is master-planned as a mixed-use development that hosts top-grade office buildings, retail outlets, academic centers, sports centers, an urban park, an iconic tower, a hotel and casino, and modern support services and amenities.
Uy built his fortune out of oil firm Phoenix Petroleum Philippines Inc. He massively expanded his businesses under the Duterte administration to include real estate, telecommunications, education, gaming and leisure, and hospitality.
The company was reportedly looking to divest some of its businesses to reduce debt.
Bloomberry Resorts Corp., the gaming company led by businessman Enrique Razon, said in May it is investing in Uy’s hotel and casino projects in Cebu and Pampanga provinces.
Prime Infrastructure Holdings Inc. also owned by Razon said last month it was in negotiations with Uy for a controlling stake in the Malampaya project.