The Branch 158 of the Regional Trial Court of Pasig City issued a resolution granting the joint motion filed by Globe Telecom, Bayan Telecommunications Holdings Corp. and Bayan Telecommunications Inc. to amend Bayan’s current rehabilitation plan.
Once regulatory approvals are obtained, a portion of Bayan’s debt will be converted into equity of up to 56.6 percent of Bayan. As a result, Bayan’s debt will be reduced by 69 percent to about $131.3 million. Globe currently owns 97.1 percent of Bayan’s total debt.
In a statement, Rafael Aguado, Bayan chief operating officer, said that the Bayan organization sees this as a positive development that will help strengthen the company’s operations and ensure Bayan’s long-term business continuity and stability.
Bayan’s revenue grew 5 percent year-on-year to P2.88 billion as of June 2013 and generated an earnings before interest, taxes, depreciation and amortization of P975 million. Growth in revenue was driven primarily by the 16-percent growth in corporate data and DSL.
Aguado said Globe’s entry into Bayan can help further maximize its current capabilities to unlock the potential of its key business assets particularly in corporate data and broadband through synergy opportunities between the two companies.
Rosalie C. Periabras