Benguet gets default notice from PNB

Listed Benguet Corp. has received a notice of default from Philippine National Bank for its P1.56-billion principal debt. But the country's oldest miner insists the notice, which it received on January 11, was premature and unnecessary pending its offer to various creditors to settle the debt. "Benguet has since written PNB that the notice is premature and unnecessary in light of the amended settlement offer," it told the Philippine Stock Exchange on Tuesday. The miner further noted that it had asked PNB, the trustee bank in behalf of the creditors, to determine who the creditors of record are. Benguet borrowed P906.44 million and $48.27 million from 23 banks in December 1993, but special purpose vehicles have since bought the debt notes. Benguet has offered various creditors to pay a fifth of its P1.56-billion principal debt in cash, saying a settlement would benefit all parties. In letters to all creditors dated October 30, the miner said it was willing to pay about P312 million. As an alternative, it could pay $2 million in cash, aside from giving up its Antamok mill in Itogon, Benguet province. The company disclosed its payment proposal to the Philippine Stock Exchange (PSE) last December 22. Benguet told the bourse on Tuesday it had not received the position of all the creditors. "Neither have the creditors met to discuss the various proposals under the offer," it added. Benguet shares closed unchanged at P13.25 apiece. — GMANews.TV