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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1295 -
DIRECTING THE MEASURES TO EXPEDITE THE FINANCIAL REHABILITATION PROGRAM
OF CONSTRUCTION AND DEVELOPMENT CORPORATION OF THE PHILIPPINES (CDCP) |
Pursuant to the Government's decision to extend all the necessary assistance in the financial rehabilitation program of CDCP, the following are hereby directed and authorized to do as follows:
1.
Development Bank of the Philippines (DBP)
Government Service Insurance
System (GSIS)
Land Bank of the Philippines (LBP)
National Development Company (NDC)
Philippine Export and Foreign Loan
Guarantee corporation (PEFLGC)
Philippine National Bank (PNB)
shall convert as of December 31,
1982 all of the direct obligations of CDCP and those of its wholly-
owned subsidiaries to such government financial institutions including
interests, fees and advances in any currency outstanding as of December
31, 1982 into shares of common stock of December 31, 1982 into shares
of common stock of CDCP at par value. For purposes of converting the
obligations of CDCP's wholly-owned subsidiaries into shares of stock of
CDCP, CDCP shall assume the outstanding obligations of its concerned
subsidiaries to the affected financial institutions. The CDCP wholly-
owned subsidiaries herein referred to are the following:
CDCP
Farms Corporation
Dasmarinas Estates Development Corporation
Dasmarinas Industrial Steel Corporation
Manila Land Corporation
Marina Properties Corporation
Tierra Factors Corporation
US
Dollar : US$ 1.00 = P9.1730
Deutsche mark : DM 1.00
= 3.8618
Malaysian Ringgits : M$
1.00 = 3.9627
This will result in the:
(a)
payment by CDCP on January 31, 1983 of all the maturities for the month
of January 31, 1983 on such direct obligations;
(b) prepayment
by CDCP on January 31, 1983 of the principal maturities from February
1, 1983 to December 31, 1983 on such direct obligations;
(c) payment by
CDCP on January 31, 1983 of all related interest charges up to January
31, 1983 on the total outstanding obligations;
(d) prepayment
by CDCP on January 31, 1983 of all related interest charges from
February 1, 1983 to December 31, 1983 on the outstanding direct
obligations (net of principal maturities prepaid as required in (b)
hereof).
3. For CDCP obligations maturing in 1983 which are guaranteed by the above-named government financial institutions (herein referred to as government-guaranteed obligations), such government financial institution shall cause CDCP to prepay on January 31, 1983 in shares of its common stock of the following:
(a)
the lease rental payment and principal maturities from February 1, 1983
to December 31, 1983 on such government- guaranteed obligations;
(b) all
related interest charges up to January 31, 1983 on total outstanding
government-guaranteed obligations, inclusive of the applicable
withholding taxes on the relevant foreign remittances for interest
payments; and
(c) all
related interest charges from February 1, 1983 to December 31, 1983 on
the outstanding direct loans (net of principal maturities prepaid as
required in (a) hereof).
After CDCP has made the payments/ prepayments herein, CDCP shall not be required to make further payments for interests on such government-guaranteed obligations to, and inclusive of, December 31, 1983.
4. With respect to CDCP obligations wherein one government financial institution guarantees another, the institution (i.e., the primary creditor) which directly extended the credit facility to CDCP shall be the entity that is the subject of Items Nos. 1 and 2 above.
5. For purposes of determining the peso equivalent of the portion of the obligations referred to in Item Nos. 2 and 3 above which are foreign currency-denominated, the conversion rate to be used shall be the Central Bank guiding rates as of January 19, 1983, as follows:
US$
1.00 = P 9.305
DM 1.00 = 3.8829
M$ 1.00 = 4.1193
% per annum
London Interbank Offered
Rate 8-15/16%
Singapore Interbank Offered Rate 9%
U.S. Prime Rate 11%
Manila Reference Rate (180 days) 15-5/16%
This Letter of Instruction shall take effect immediately.
Done in the City of Manila, this 23rd day of February, in the year of Our Lord, nineteen hundred and eighty-three.
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Since 19.07.98.