News Roundup 23 July 2022
Jul 23, 2022 • 6 min Read
Banks move to declare Davao’s Dennis Uy in default after missed Clark lease payments | INQUIRER.NET – Banco de Oro Universal Bank, the country’s largest private financial institution, moved to foreclose on the loan collateral of Dennis Uy of Davao late Friday, firing the opening salvo in a series of moves that — depending on the ability of the controversial businessman to settle his obligations in four days — could lead to the largest corporate default in Philippine history. The Inquirer learned that BDO, which has provided the bulk of the financial muscle for Uy’s acquisition spree during the Duterte administration, sent a foreclosure notice to the businessman’s flagship holding firm, Udenna Corp., in a bid to force him to the negotiating table and agree to “an orderly settlement.” Uy has until Tuesday, July 26, to respond favorably to the notice of BDO, which leads a syndicate of banks with exposures to his six-year debt-fueled corporate buying binge. The Inquirer spoke to three senior bank officials with direct knowledge of the transaction, but they spoke on condition of anonymity. The Inquirer has also reached out to Uy and to his company but have yet to receive their replies. One banker said this latest debt woe to hit Uy was triggered by the businessman’s failure to stay abreast of lease payments to the Clark International Airport Corp. (CIAC) for the business enclave he was building on the grounds of the former US military base. “It’s just a small liability that’s due — $4 million — but since CIAC was already moving to foreclose, the banks decided to move ahead and foreclose on Uy’s assets so that they would become the new owners who will deal with CIAC,” he said. “Dennis [Uy] has until Tuesday to pay.” The banker expressed concern, however, about the so-called cross default provisions said to be present in all of Uy’s loan agreements with his creditor banks which, at its peak midway through the Duterte administration, was estimated to hit as high as P110 billion. A cross default provision, which is standard practice when structuring corporate loans, makes one incidence of default by the borrower, not matter how big or small, legally a default on all of his other debts. A default of this magnitude would be the largest by a private borrowing in local corporate history, dwarfing the soured loans of Subic-based Hanjin Shipyards of $412 million, or P23 billion at the prevailing exchange rate. “Conservatively, Dennis Uy’s outstanding loans today should be at around P70 billion to P80 billion, excluding the loans of Dito Telecommunity which were lent by banks on the basis of China Telecom’s credit standing,” said another person familiar with the deal. A bank official said the BDO’s intention in serving the foreclosure notice was not to seize Uy’s assets, per se, but to force the businessman to come to the negotiating table. “Foreclosure is not the preferred option,” he said. “The situation can be remedied if they are willing to work with the banks.”
Lawmaker asks House SecGen to lift SONA ban on clothes with political statements | PHILSTAR.COM – A progressive lawmaker in the House of Representatives has asked the chamber’s secretary general to lift the ban he imposed on clothes with political statements for President Ferdinand Marcos Jr.’s first State of the Nation Address. Rep. France Castro (ACT Teachers party-list) said in a letter dated Saturday that there are no congressional rules, parliamentary practice, protocol and social norms violated by wearing statement pieces, which the Makabayan bloc that she is part of has traditionally done in past SONAs. “No such rule has ever been imposed in either House in recent history, given its intrusion into the personal freedom of dress of the Member and, more importantly, the violation of the civil and political rights of the people on whose behalf the House Member sits on the Joint Session,” Castro said. In a July 20 memorandum, House Secretary General Mark Llandro Mendoza laid down a dress code for attendees at the plenary hall and on videoconference platforms which bars the “wearing of clothes with political messages.” Rep. Raoul Manuel (Kabataan party-list) likened the ban to Martial Law, which the president’s father and namesake declared in September 1972 resulting in the curtailment of basic human rights like the freedom of speech and assembly. “This is the first time in recent history that an explicit prohibition is issued. Protests are prohibited, even messages on clothes are prohibited because they’re very afraid of art?” Manuel said partly in Filipino. “They should respect our rights to expression in our little ways.” In her letter, Castro said the wearing of lawmakers of their advocacies to the SONA, and even during regular session days, is precedented, citing the donning of Indigenous clothing, hijabs and ribbons. She added that even the wearing of Barong Filipino and Filipiniana dress as prescribed in the dress code “is a political message in itself — one that claims our heritage as Filipinos and our dedication to the Filipino.”
Quezon City allows rallies along Commonwealth Avenue, IBP Road | PHILSTAR.COM – The Quezon City government yesterday decided to allow rallies along Commonwealth Avenue and Interim Batasan Pambansa (IBP) Road for President Marcos’ first State of the Nation Address (SONA) on Monday. Progressive groups may conduct their march and assembly along Commonwealth Avenue (eastbound) up to the corner of Tandang Sora Avenue while pro-Marcos groups will be allowed to hold their program along the IBP Road near Sinagtala street in Barangay Batasan Hills, according to a statement from the city government. Acting on the directive of Mayor Joy Belmonte, key administrators from the city government – notably officials from the Department of Public Order and Safety, the Epidemiology and Surveillance Unit and the Task Force on Transport and Traffic Management – met with Quezon City Police District director Brig. Gen. Remus Medina and Department of the Interior and Local Government-Quezon City director Manny Borromeo yesterday afternoon to discuss Bagong Alyansang Makabayan’s appeal for reconsideration after the DPOS denied Bayan’s appeal for a permit to rally along Commonwealth Avenue. The city officials met yesterday morning with Bayan secretary-general Renato Reyes Jr., Kilusang Mayo Uno leader Obet de Castro, Carlos Montemayor Jr. of the National Union of People’s Lawyers, Sanlakas leaders Flor Santos and Jose Pedrosa and Lieu Razos of the Philippine Build Better Movement. The city government said the focal point of the discussion was how to uphold the fundamental constitutional right to freedom of peaceful assembly and free speech, while at the same time ensuring public order and safety. Classes at all levels will be suspended on Monday as a courtesy to Marcos and to avoid inconveniencing students who may find transportation difficult. Quezon City-based businesses are also highly encouraged to do the same or adopt work-from-home arrangements, in order to ease mobility requirements and congestion.
