PSE Circular for Brokers No. 1549-99
PSE Circular for Brokers No. 1549-99 • Philippine Stock Exchange • Circulars for Brokers • Jun 29, 1999
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June 29, 1999 PSE CIRCULAR FOR BROKERS NO. 1549-99 PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Ortigas Attention: Ms . Grace B . De Guia We are pleased to inform you that the long standing dispute between Mondragon Leisure Resorts Corporation (MLRC) and Clark Development Corporation (CDC) is finally settled. Yesterday, June 28, a Compromise Agreement was signed by MLRC Chairman Jose Antonio U. Gonzalez, CDC President and CEO Rufo Colayco, and the duly designated Board of Arbitrators including a representative from the Office of the President. The Compromise Agreement established the amount to be paid by Mondragon in rental arrears of P325 Million through June 30, 1999 and specified amendments to the existing Lease Agreement between the two parties including the substantial reduction of future Minimum Guaranteed Lease Rentals for the remaining term of the lease agreement to assure the future viability of the project. Immediately upon CDC's receipt of the Letter of Credit for the installment payment of rental arrears, MLRC may re-open and resume normal operations of the Mimosa Regency Casino. The Compromise Agreement also included provisions which clarify the method of calculating percentage gross rentals. Furthermore, the parties agreed to the return of certain peripheral leased properties back to CDC as well as a time table for the construction of a water park and additional hotel. CDC also agreed that MLRC may construct and establish additional casinos within Mimosa subject to the approval of appropriate government agencies. The Compromise Agreement was filed yesterday with the Supreme Court in compliance to the Court's order for both parties to submit an amicable settlement. We have been working closely with our creditor banks who have expressed support in our effort to settle our obligations to the government. We look forward to normalizing our operations in Mimosa and welcome the new era of cooperation between Mondragon and Clark Development Corporation. Sincerely, (SGD.) PIERRE PAUL S. BUHAY Controller
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