Aboitiz Power’s Luzon Hydro Corp (LHC) said it has reached a compromise agreement with the Ilocos Sur provincial government to settle its tax delinquencies that have piled up from 2004 to 2019.
The town had announced the auction of Abotiz’s seven assets (machines, properties and equipment) to cover the firm’s back taxes in separate biddings in the fourth quarter last year.
Aboitiz blocked the sale with a temporary restraining order issued by the Regional Trial Court of the Province of Ilocos Sur while it haggled with the province’s officials starting February 2020.
Aboitiz said it finalized a compromise agreement with Ilocos Sur officials on July 22 to settle the case which was promulgated by the RTC.
Aboitiz said the case would not have a material impact on its business as the power plant accounts for less than one percent of Aboitiz Power’s consolidated earnings.