PH Resorts Group Holdings Inc. (PHR) on Wednesday said it is targeting to more than double its authorized capital stock to P20 billion from the current P8 billion as part of its restructuring plan, which aims to wipe out its capital deficit.
The company led by Davao businessman Dennis A. Uy said it plans to restore its stockholders’ equity to a positive position in two years following completion of the proposed restructuring, it said in a disclosure to the Philippine Stock Exchange.
This takes into account the planned deconsolidation of its operating units under PH Travel and Leisure Holdings Corp. and the corresponding reduction in the group’s liabilities.
The plan also banks on the continued financial support committed by parent company Udenna Corp., the reduced cost structure of PHR as a holding company and management’s ongoing efforts to identify additional equity-accretive transactions.
The company, however, said there is no assurance that the two-year timeline will be achieved as it remains subject to the completion of the proposed restructuring, the execution of definitive agreements, receipt of required regulatory, corporate, and stockholder approvals and prevailing business, market and economic conditions.
The proposed restructuring principally involves the rationalization and settlement of intercompany advances and balances, the transfer of PH Travel from PH Resorts to Udenna and the settlement of outstanding payables and other related obligations.
‘A significant component of the restructuring plan involves the proposed separation of PH Travel and its subsidiaries from PHR. Under the proposed restructuring, Udenna intends to acquire PHR’s ownership interest in PH Travel through the settlement of outstanding advances payable by PHR to Udenna,’ the company said.
PH Travel fully owns the firms involved in the Mactan casino project-the LapuLapu Leisure Inc. and LapuLapu Land Corp.-Clark Grand Leisure Corp., which has already had its integrated casino-resort license revoked, DHPC, Donatela Resorts and Development Corp. and Davao PH Resort Corp.
DPRC owns 3,134 square meters of prime commercial real estate in Azuela Cove, Davao City which is planned to be developer into a mid-rise Branded Serviced Residence/Boutique Hotel.
Discussions and due diligence are underway to select a complementary property on the Island Garden City of Samal that will be planned as branded serviced residences/hotel and resort that can be reached via a short scenic boat ride and the future Davao-Samal Bridge that is currently under construction. A property for share swap is being contemplated as initial potential funding for the Davao projects.