BCDA, CJHDevCo set to sign restructuring accord

The agreement between the Bases Conversion Development Authority (BCDA) and the Camp John Hay Development Corp. (CJHDevCo) on the restructuring of the latter’s back rentals will be signed later this week after lawyers acting for both sides iron out certain technical matters.

Fil-Estate led CJHDevCo president Robert John Sobrepeña said, "there has already been a meeting of the minds and an agreement has been reached in principle. It will be signed in a few days’ time after the lawyers tie up a few loose ends."

The BCDA and CJHDevCo had scheduled a formal signing Tuesday night but BCDA president and chief executive officer Rufo Colayco failed to show up supposedly due to a sudden illness.

Sobrepeña said the two parties still have to iron out minor kinks in the restructuring proposal. He said there is a technical problem involving identifying assets in Camp John Hay which will be included in the dacion en pago component of the revised payment scheme.

Under the terms of the new accord, 70 percent of the P700 million to be restructured will be paid within 12 months. P50 million will be paid immediately upon signing of the memorandum of agreement, with the balance paid according to an agreed schedule of payments.

The payments will be mostly in cash with some small part of it paid in properties.

"This is most definitely a win-win solution. And the fact the CJHDevCo infused P2 billion into developing Camp John Hay is a clear indication that we were always negotiating in good faith," Sobrepeña said.

Now that the matter has been resolved, the CJHDevCo expressed confidence that it can now proceed full steam ahead with the rest of its development plans for Camp John Hay, with a further P1.2 billion earmarked in funds.

"We are very optimistic about Camp John Hay. The momentum is moving nicely forward, with occupancy rates both at the Manor Hotel and the commercial establishments beyond our expectations," Sobrepeña said. – Marianne Go