Aboitiz Power unit prepays P2.37B in debt
Aseagas Corp., a wholly-owned subsidiary of Aboitiz Power Corp., has settled P2.37 billion in debt ahead of maturity as part of its strategy to clean up its balance sheet and strengthen its financial position.
In a stock exchange filing, AboitizPower said Aseagas prepaid its outstanding loan with the Development Bank of the Philippines.
AboitizPower also disclosed that the 8.8 megawatt biomass plant in Lian, Batangas temporarily ceased operations on Nov. 24, 2017 due to unavailability of the supply of organic effluent wastewater from Absolut Distillers Inc.
After evaluating the circumstances and the ongoing technical problems relating to the plant’s fuel stock and digester components, Aseagas decided to maintain the shutdown and to determine the appropriate way forward.
In addition to the loan from DBP, Aseagas also invested P950 million in the biomass plant, and has around P460 million in outstanding liabilities.