MANILA – Globe Telecom Inc., in a statement, said that that they are poised to turn around Bayan Telecommunications Holdings Inc. (Bayantel) despite queries about the acquisition from rival Philippine Long Distance Telephone Co. (PLDT).
Represented by the Salalima, Castelo, and Ungos law firm, Globe filed a comment before the National Telecommunications Commission (NTC) to show that the company delivered quality products and services to meet the demands of their customers in more than 20 years.
“It is the same dynamism that has given Globe a clear-eyed view in the immense potential of a revitalized Bayantel – a Bayantel that will, in the not-too-distant future, duplicate for its own customers the same transforming and enriching experience that Globe’s subscribers have come to know,” said the company in the comment.
However, PLDT which was represented by Angara Abello Concepcion Regala & Cruz countered saying that Globe will see that there will be no financial benefit for them should they acquire Bayantel given the latter’s negative retained earnings of P15.87 billion.
They further pointed out that it will take 98 years for Globe to recover the losses of Bayantel.
“These matters are absolutely none of PLDT’s business, apart from the fact that they are not relevant to the present proceedings,” retorted Globe.
Last October 9, the former Special 17th Division of the Court of Appeals gave a temporary restraining order (TRO) that halted hearings on the application of Globe to purchase Bayantel.
The appellate court then ordered NTC from executing its orders handed out on Nov. 27, 2013, Dec. 13, 2013, and July 3, 2014 that allowed the court proceedings for Globe and Bayantel’s joint application for regulatory approval.
Under the transaction which was approved by the Pasig City Regional Trial Court, Globe will own 56.6 percent share in Bayantel by converting 69 percent of the latter’s debt. In exchange, the outstanding dues of Bayantel will be slashed down by 69 percent to $131.3 million from $423.3 million.
Last May 2014, Globe requested the rehabilitation court to restructure the $423.3 million debt of Bayantel to avoid default.