Benpres said the net result for the semester did not include BayanTel’s net loss for the semester. The company, however, will review its loss provision with BayanTel when it recognizes the remaining P5-billion guaranteed liability from the convertible preferred shares issued by the telecommunications firm by end this year.
It attributed the decrease in losses to higher revenues and lower operating expenses. Sales rose 8.55 percent to P838 million from P772 million last year.
During the first half, ABS-CBN Broadcasting Corp., the media concern of the Lopez family, continued to dominate the broadcasting industry with an average audience share of 46 percent and ratings of 19 percent which is higher than all its free-to-air competitors combined.
First Philippine Holdings Corp., the holding company for all construction and energy-related interests of the Lopez family, reported a 15-percent growth in its net income for the first six months to P1.09 billion from P949 million. Revenues rose 30 percent to P10.4 billion, mainly due to the increase in sales generated by the power generating subsidiaries.
Benpres is seeking to reschedule repayments of its $596.9 million (approximately P30.9 billion) in debts in order to execute an orderly divestment of certain assets.
Benpres needs to undertake financial belt tightening measures and raise cash in order to address its ballooning liabilities.
Credit Lyonnais has been appointed as financial adviser to assist Benpres in the debt restructuring program of its troubled subsidiaries and suggest means to strengthen the group’s capital structure.
It has been tasked to search for a new investor in Benpres’ water utility unit Maynilad Water Services Inc.
As of end-2001, the holding firm’s total liabilities amounted to P17.034 billion, 52.9 percent higher than the previous level.
Of the company’s total debt, $181.9 million accounted for Benpres’ direct liabilities while indirect debt stood at $407.8 million.
Benpres intends to reduce liabilities "by cutting debt levels, increasing cash through asset sales and possibly tapping equity markets and cutting costs by suspending investments."
Among the assets Benpres may divest to bring down overall debt to a more manageable level are interests in First Philippine Infrastructure Development Corp., Sky Vision’s Beyond Cable and Rockwell Land. – Zinnia dela Peña