Tobacco Firm Extends Additional Loan to Subsidiary

Source from:  GMA News 07/06/2009

Listed Philippine Tobacco Flue-Curing and Redrying Corp. will lend P72 million to its subsidiary Baesa Redevelopment Corp. to redevelop its warehouse properties, corporate secretary Patricia O. Bunye said. In a disclosure, Bunye said the amount was increased from P40 million after it was determined the original was "not sufficient" to cover the costs. A supplement to loan agreement was signed Thursday after Philippine Tobacco extended financial assistance in August with an interest of eight percent per year. She said the parties have the option to raise the amount if it is still insufficient for the needs of Baesa Redevelopment. The interest was also reduced to six percent. The company and Baesa Redevelopment have contract of lease covering parcels of land in Baesa, Quezon City where its five warehouses are located. Philippine Tobacco bought four for P57 million based on book value. The redevelopment project was estimated at P90 million. Upon completion of the first warehouse redevelopment, Baesa Redevelopment will shift its leasing business to commercial spaces from warehouse, which has been "very profitable" in the past years. Enditem