MANILA - A wholly owned unit of Alliance Global Group Inc is seeking the consent of its creditors to amend the terms and conditions of its Singapore Exchange-listed notes.
In a disclosure to the Philippine Stock Exchange, the holding firm of Andrew Tan said Alliance Global Group Cayman Islands Inc is inviting holders of its $500-million guaranteed debt papers to approve the proposal to amend the financial covenants and related definitions in the terms and conditions of the notes in the trust deed dated August 18, 2010.
Alliance Global is modifying the terms to "afford greater flexibility for the issuer, the guarantor and its subsidiaries to carry out their business strategies in light of expected expansion and investment opportunities in the Philippines in the near-term; make other necessary clarificatory modifications; and generally align the financial covenants and related provisions more closely to market standard forms."
The Alliance Global unit will seek the approval of note holders on March 22.
The listed Philippine conglomerate guaranteed the notes, which have a coupon rate of 6.5 percent and will mature in 2017.
Alliance Global will hike its capital spending to more than P40 billion in 2013 to bankroll the expansion of its real estate, food and beverage, quick service restaurants and tourism ventures.
The conglomerate owns Megaworld Corp and Emperador Distillers, which produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.
Alliance Global also controls Golden Arches Development Corp, which holds the local franchise of McDonald’s.
The conglomerate also owns Global-Estate Resorts Inc and Travellers International Hotel Group Inc in a partnership with Genting Hong Kong. Travellers operates Resorts World Manila, the first integrated tourism estate in the country.
source: interaksyon.com
