ASB implements SEC-okayed rehab plan

The ASB Group of Companies concluded agreements with three creditor banks to implement the rehabilitation plan earlier approved by the Securities and Exchange Commission.

Agreements have been concluded with Allied Bank, I Bank and DBS Philippines.

The ASB Group of Companies is currently negotiating with other creditor banks. The agreements are intended to achieve the business targets of the rehabilitation plan, including the completion of ongoing projects.

Earlier, the ASB Group created a Project Governing Board to help implement the rehabilitation plan. The Project Governing Board is chaired by the SEC-appointed receiver, Fortunato Cruz with lawyer Leonardo Siguion-Reyna representing the unsecured creditors and Luke C. Roxas representing ASB Group of companies as members. A representative from the trustee bank, Bank of Commerce, is also a member of the board but without voting rights.

Roxas, chairman of ASB group, said that the Project Governing Board shall administer and manage an asset pool which shall contain assets specifically set aside to generate the funds to pay the unsecured creditors.

Among the assets which will be placed in the asset pool are unecumbered real estate assets worth around P60 million; two uncompleted projects which can generate funds amounting to around P700 million; the assets which shall be released from the mortgagee banks as well as cash of around P200 million; the sale of DBS Philippines, Inc.

The completion of BSA Twin towers and Legaspi Place are two projects under the auspices of the Project Governing Board.

Roxas said that he is deeply saddened by the continuing attempt of a few unidentified unsecured creditors, who maliciously discredit the SEC-approved rehabilitation plan and put undue pressure on the Department of Justice.

He explained that this plan was submitted to the SEC primarily, among others, to assist the unsecured creditors of ASB. Without the rehabilitation program, all of the assets of ASB shall go to the bank creditors and no assets will be left to the unsecured creditors. As a result of the SEC intervention, there will be assets which can generate cash to pay the unsecured creditors.

As far the DOJ is concerned Roxas said the he had answered all the charges filed against him. He presented evidence to show that he is engaged in the real estate business and h as been a successful businessman with 16 large projects to his credit. His present predicament is due to the economic slowdown which has affected many large companies in the country and, was brought about by the 1997 crisis.