Shares in Philippine-listed companies drop on parent's debt position
An employee (R) loads gasoline on a motorcycle at a Phoenix Petroleum petrol station in Paranaque city, Metro Manila, Philippines October 31, 2016. Picture taken October 31, 2016. REUTERS/Ezra Acayan
MANILA : A Philippine conglomerate owned by a close associate of former President Rodrigo Duterte said on Monday it has received a notice of declaration of default from lenders, sending shares in related companies sharply lower in early trade.
DITO CME fell as much as 9 per cent, Chelsea Logistics sank 16 per cent, Phoenix Petroleum dropped 6 per cent and PH Resorts retreated as much as 7.5 per cent in the first 30 minutes of trade.
The listed companies are owned by Philippine conglomerate Udenna Corp, which has pursued a debt-fuelled acquisition and expansion spree since 2016. "There has been, in fact, no event of default or, at the very least, no irremediable event of default," Udenna said in a statement on Monday.
