Mondragon's losses down to P995 M in '99

Cash-strapped Mondragon International Philippines Inc. (MIPI) was able to trim its losses last year to P995.218 million from P1.132 billion in 1998.

MIPI said it was able to pare down its losses despite a drastic drop in its revenues from operations which last year stood at only P523.739 million compared to P1.614 billion in the previous year or 1998 before its financial woes unraveled.

Last year, MIPI's current liabilities amounted to P6.25 billion while its long-term debts totaled P1.28 billion.

MIPI said its financial statements for 1999 are not yet complete because of the takoever of the Clark Development Corp. (CDC) of its Mimosa Leisure Estate which prevented it from having access to records.

MIPI said that although legal proceedings are still ongoing, it is still willing to come to an amicable settlement with the CDC and the Philippine Amusement and Gaming Corp. or Pagcor.

"The normalization of the Mimosa Regency Casino's operation is still the company's primary objective being the major revenue contributor among the business modules in the Mimosa Leisure Estate," MIPI said in a disclosure to the Securities and Exchange Commission.

It added that the forcible takeover of certain operating modules or units of Mimosa has caused loss of revenues to the company specific to the contribution of golf operations and the revenue generation from the hotel and villas as well as food and beverage sales.

MIPI said the Mimosa Golf & Country Club including the Monte Vista Hotel was forcibly taken over by CDC even before the lapse of the five-day period given by the Court Sheriff for MLRC to comply with the writ of execution. However, the rights of existing Mimosa golf club members, in any case, will not be affected as they are vested rights already existing and validly entered into by Mondragon.