Listed property developer MRC Allied Inc. has decided to swap P1 billion worth of debt to equity with its creditor Menlo Capital Corp., as part of its plan to lessen its liabilities.

A disclosure to the Philippine Stock Exchange revealed on Wednesday that MRC Allied has decided to undergo debt-to-equity conversion of up to P1 billion worth of previously contracted debts, loans and payables with Menlo Capital Corp., the primary creditor who expressed its interest to swap MRC’s debt to equity.

According to MRC Allied, the transaction will significantly reduce its liabilities.

The terms and conditions of the conversion include MRC issuing a maximum of five billion common shares valued at existing par, to cover the conversion. MRC Allied also said that intends to implement the conversion and issuance of shares as soon as it is approved by its shareholders.

”The target is to implement within the first quarter of the current year. The company is yet to finalize the terms and other details of the conversion. No condition precedent has been approved and finalized by the company at this time,” MRC Allied said.

After the transaction, the firm’s public float will be at 3.6 billion, or 39.68 percent.

In December 2012, MRC Allied said that it has taken over the management of the New Cebu Township One (NCTO) from the previous management, New Cebu Township One Association Inc., as mandated by the Philippine Economic Zone Authority (PEZA), effective immediately.

In its previous disclosure to the exchange, MRC stated that this management takeover means that the maintenance of the aforementioned PEZA zone, including improvements to the existing facilities and utilities, shall be undertaken by them.

The disclosure further said that MRC is set to break ground for the construction of the first phase of the Cebu Technopark Project.

Located within the PEZA zone of the NCTO, the first phase of the Cebu Technopark Project will include the widening of the roads leading to the proposed water park and the reconfiguration of the existing lake to accommodate the proposed water park and recreational facility.