Camp John Hay firm admits P2.6 billion debt-A A +A
Monday, June 6, 2011
BASES Conversion and Development Authority (BCDA) vice president for Business Development and Operations Dean Santiago said Camp John Hay Development Corporation (CJHDevco) has acknowledged its P2.6 billion debt.
Santiago said a statement sent by John Hay Management Corporation belies the recent statement of CJHDevco denying the arrears to BCDA.
He said CJHDevco has acknowledged its indebtedness to the BCDA when it signed the Restructuring Memorandum of Agreement in 2008 for the lease of 247 hectares in the John Hay Special Economic Zone in Baguio City amounting to P2,686,481,644.
Santiago said CJHDevco has paid BCDA P100,000,000 upon signing of the 2008 agreement.
He added that on top of CJHDevco’s P2.4 billion arrears, it has again failed to meet the May 31 deadline to pay its current lease rentals amounting to P272 million.
Santiago said by end of June 2011, CJHDevco’s arrears will be increased to P381.8 million -- P309.68 million of rentals from December 2009 up to June 2011 and P72.18 million in interest on past due obligations. (Ma. Elena Catajan)
Published in the Sun.Star Baguio newspaper on June 06, 2011.