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Dennis Uy takes advantage of Bayanihan Law: Phoenix extends repayment of P3.7B loans, refinances P9.4B debts in 2020

Bilyonaryo Dennis Uy has taken advantage of financing relief packages for COVID-affected firms in the Bayanihan Act to give his debt-laden Phoenix Petroleum some breathing room in 2020.

Phoenix Petroleum revealed in its 2020 report that it “availed of repayment extension of loans amounting to P3.741 billion in relation to the parent’s company’s qualification to avail the loan term extension under Section 4 (uu) of RA No.11494 Bayanihan to Recover as One Act.”

The Bayanihan Law mandated all banks and financial institutions to grant a 60-day grace period for the payment of all current loans falling due on or before 31 December 2020.

This includes the payment of loans on a staggered basis without interest, penalties and other charges for a period longer than 60 days and beyond the December 31 deadline.

In exchange for giving Phoenix and other COVID-distressed companies debt relief, the Bayanihan Act grants perks to banks such as staggered booking of credit losses; exemption from loan-loss provisioning, real estate loan caps, and related party restrictions; and non-inclusion of subject loans in the bank’s non-performing loans.

Previously, Uy’s other company, Chelsea Logistics and Infrastructure Holdings, revealed that it has availed of the Bayanihan Act loan perks but did not make any details.

Aside from the loan extension, Phoenix also refinanced P9.4 billion of its total loans in 2020.

The combined P13.141 billion loans accounted for a quarter of Phoenix’s total borrowings of P48.243 billion in 2020, down 3.3 percent from P49.896 billion in 2019.

The refinancing and loan extension slashed Phoenix’s interest expenses to P1.849 billion in 2020, down 28 percent to P2.583 in 2019.

The moves also gave Phoenix more financial breathing space as it converted its short-term loans to longer term debt – its current loans (or debt due in one year or less) dropped P29.804 billion in 2020 from P38.143 9in 2019 while non-current liabilities rose to P18.439 billion in 2020 from P11.439 billion in 2019.

Phoenix’s biggest creditors are:

* BDO (P12.95 billion)

* Land Bank of the Philippines (P7.258 billion)

* Philippine National Bank (P3.137 billion)

* BDO Private Bank (P2.467 billion)

* Development Bank of the Philippines (P2 billion)

* United Coconut Planters Bank (P1.2 billion)

* Asia United Bank (P984 million)

* Union Bank of the Philippines (P962 million)

* Rizal Commercial Banking Corp. (P930 million)

* Robinsons Bank (P900 million)

* Maybank Philippines (P720 million)

* China Banking Corp. (P531.22 million)

* Bank of China (P476 million)

* Penta Capital Investment (P328 million)

* Metrobank (P139 million), and

* ANZ Bank Vietnam (P123.269 million).

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