Mondragon resets stockholders’ meet

Mondragon International Philippines Inc. (MIPI) has reset to September its annual stockholders meeting to pursue negotiations on the Mimosa Leisure Estate, the holding company told the Philippine Stock Exchange.

MIPI chairman and chief executive officer Jose Antonio Gonzalez said the meeting was rescheduled to give the company enough time to pursue talks with government agencies and prospective investors in the Clark-based Mimosa, which was put up by its subsidiary Mondragon Leisure and Resorts Corp. (MLRC).

"While we have been holding negotiations with investors, they have asked for more time in view of what they call political uncertainties and country risk," Gonzalez said.

From the scheduled March 15 meeting, MIPI has set Sept. 15 as the new date for the annual shareholders meeting.

Gonzalez said the prospective investors will provide additional funds both to settle the firm’s obligations to the government and normalize the operations within the Mimosa leisure complex.

The Mimosa complex features, among others, a 36-hole championship golf course, a 304-room five-star hotel, various deluxe furnished villas and a gaming casino.

The government, through the Clark Development Corp. (CDC), has taken over management and operations of the Mimosa leisure estate since December 1999 after securing a favorable court order over its dispute with MLRC’s non-payment of tax and rental fees worth about P325 million as well as reported violations of several terms and conditions of the lease contract.

Although MLRC has filed a counter suit still pending with the courts, it has been in active negotiations with CDC for the resolution of rental issues, a principal component of which is the entry of new investors to bring in fresh equity into MLRC to settle its government obligations and restructure its P7 billion debts owed to a consortium of banks.

The CDC has already prequalified bidders for the Mimosa estate and expects the sale to be concluded by this month, although this was contested by MIPI, which sought a court order to stop the sale.

In contesting the sale, MIPI alleged that the terms and conditions of the bidding are manifestly and grossly disadvantageous to the government.