Capital Restructuring Eyed to Address PT&T Debt Woes

Listed Philippine Telegraph & Telephone Corp. (PT&T) is poised to implement a capital restructuring plan that would settle long-running obligations ahead of the entry of a foreign strategic partner, Inquirer.net reported. A key feature of the plan, according to PT&T chief operating officer Miguel Bitanga, is the conversion of its creditors into preferred shareholders, which was outlined under the company’s court-mandated rehabilitation. This was linked to a series of steps, including increasing PT&T’s authorized capital. This would pave the way for the entry of a strategic partner, deemed crucial in PT&T’s goal of becoming a third telco player to challenge incumbents PLDT Inc. and Globe Telecom. “This is one of the things we are now resolving, the debt situation,” Bitanga said. PT&T chair Salvador B. Zamora II earlier told the Inquirer that PT&T, established in 1962 and was once a rival to telco giant PLDT Inc., had accumulated debts of about P12 billion under its previous owners. When Zamora’s group took over in the middle of 2017, it tapped SGV & Co. to conduct an audit on PT&T for its capital restructuring, Bitanga said. Read more.
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