DENNIS A. Uy’s Chelsea Logistics and Infrastructure Holdings Corp. on Monday clarified a newspaper report published last week that the Davao-based businessman was seeking government guarantee for his firm’s new loans.
In a disclosure to the stock exchange, Chelsea Logistics said that it was working with the Philippine Guarantee Corp. (PGC) because the group might reach the single borrowers’ limit with one of its financing bank, which it described as “one of the main banks in the country which supports the shipping industry.”
It said it was hoping to clarify the “insinuations” in the report, adding that the state guarantee it obtained is only “limited to the loan of approximately P700 million.”
“The Group requires a guarantee to be provided by PGC in order to secure said loan obligation,” it said.
It said the loan amount will be used to fund a single vessel, and not for any other loan obligations of the Chelsea group. It said it was capable of covering all its loan obligations supported by its strong earnings before interest, taxes, depreciation and amortization, or EBITDA. — Arjay L. Balinbin