Benguet Corp. offers settlement to creditors

Mining firm Benguet Corp. on Tuesday announced that it offered a settlement agreement to its creditors but insisted that it was never remiss in its obligations.

Benguet, whose trading of shares was suspended by corporate regulators, told the Philippine Stock Exchange that it "made specific and firm proposals for the settlement of its debt approximately amounting to P1.5 billion to the creditors of record."

"Benguet offered to settle its obligations under current market conditions and especially as they relate to Special Purpose Vehicle (SPV) Law. Benguet feels confident that these debt settlement proposals will lead to an early resolution of this old obligation," the company said.

Last week, the company reported that it has received another notice of default from the Social Security System.

Corporate regulators had earlier ruled to suspend the trading of Benguet's shares following the company's failure to inform the investing public that it had already been issued default notices by other creditors previously.

Benguet said it was hammering a commercial settlement to its creditors through the Trustee-PNB (Philippine National Bank).

Earlier this month, the Securities and Exchange Commission affirmed the suspension order slapped by the PSE to Benguet, saying the company violated disclosure rules.

The imposition of the penalties and trading suspension by the PSE were due to Benguet's failure to provide material information regarding its debt problems, amounting to P1.2 billion.

Benguet failed to disclose the receipt of notice of default in February issued by PNB Trust Banking Group for non-payment of its loan obligations with Tranche 1 (SPV-AMC), Inc.

Also, Benguet was unable to disclose receipt of another notice of default in July from PNB for failure to pay its loan obligations with Investment 2234 Philippines Fund 1 (SPV-AMC), Inc. - Cheryl M. Arcibal, GMANews.TV