UDENNA Corp., the holding firm of Davao businessman Dennis Uy, on Thursday said the default notice sent to its affiliate Clark Global City Corp. has been withdrawn by the banks.
In a statement, the affected loan under the omnibus loan and security agreement involving Clark Global City, as principal borrower, has already been reinstated.
“With this matter behind us, all parties involved remain committed to working together and cultivating their shared value through an impactful partnership,” the company said.
Udenna received a default notice on July 22.
Banks led by BDO Unibank Inc., earlier confirmed that Udenna had failed to pay $4 million in debt related to an airport lease agreement.
The default was in relation to its obligations under the master lease agreement between Clark International Airport Corp. and Global Gateway Development Corp,, the developer of the properties in the former US military base in Pampanga.
Clark Global City earlier assured BDO, the country’s lender, that it is in the process of updating its obligations to its lessor, CIAC, on or before July 27.
BDO said the Clark Global City debt is secured and a default will not have a material adverse effect on the financial condition and business of the bank.