Filipino telco Bayan Telecommunications (Bayantel) has exited corporate rehabilitation, prompting majority shareholder Globe Telecom to confirm that it will invest between USD200 million and USD300 million of fresh capital into the company to kick-start its network modernisation programme. The disclosure was made by Globe COO Gil Genio, who also confirmed his tenure as the newly-appointed chairman of Bayantel.
Bayantel has successfully exited corporate rehabilitation some eight years before the anticipated deadline, aided by the entry of Globe in 2013 which cut short the process. With debts of USD497 million, the ailing telco sought court-assisted rehabilitation in 2003 and in November 2013 the Pasig City Regional Trial Court Branch 158 confirmed the Amendment of Bayantel’s Rehabilitation Plan under which Globe – as Bayantel’s principal creditor – was authorised to convert its debt holdings into a majority controlling interest of at least 54% in Bayantel’s outstanding shares. Ayala-led Globe has already spent USD172 million on Bayantel, most recently investing PHP1.83 billion (USD40.51 million) in July 2015 to buy out the remaining shares of Bayan Telecommunications Holdings Corp and Lopez Holdings Corp. It upped its stake to 98.57% as a result of the debt-to-equity conversion.