PSE Circular for Brokers No. 2960-99

November 19, 1999 PSE CIRCULAR FOR BROKERS NO. 2960-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. November 18, 1999 Date of Report (Date of earliest event reported) 2. SEC Identification Number 21817 3. BIR Tax Identification No. 321-000-530-631 4. PHILIPPINE TELEGRAPH AND TELEPHONE CORP. (PT&T) Exact name of registrant as specified in its charter 5. METRO MANILA, PHILIPPINES Province, country or other jurisdiction of incorporation 6. (SEC Use Only) Industry Classification Code: 7. Spirit of Communications Centre, 106 C. Palanca Jr., St., Legaspi Village, Makati City 1229 Address of principal office 8. (632) 818-0511 to 25 Registrant's telephone number, including area code 9. N/A Former name of former address, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Shares Outstanding and Amount of Debt Outstanding Common stock P1.00 par value : 799,998,728 11. Indicate the item number reported herein: Item 9: Other Events (a)(1)(F) Current Reports Item 9-Other Events : The Company executed a Memorandum of Understanding (MOU) with its creditors effective as of September 20, 1999. The MOU shall take effect for the period of 2 months unless earlier terminated or extended by the Company and/or the Majority of Creditors. cdll A Management Restructuring Committee (MRC) was formed pursuant to the said MOU. The 4-member MRC has 2 representatives from each of the creditors and the Company. The MRC is tasked to determine the continued viability of the Company in terms of its ability generate enough cash flows to service both its operations and its debt. Subject to a positive evaluation by the MRC of an attainable business plan developed by the Company's management and approved by its Board of Directors, a restructuring plan will be formulated and recommended to the Board of Directors and the Creditors Steering Committee. cdll SGV & Co. has been hired by the creditors as their financial advisor in the conduct of the evaluation of the Company's viability. cdlex The Company has received a demand letter from Land Bank of the Philippines. The Company has responded requesting that any further action be held in abeyance as a sign of good faith and to allow the MRC to render its mandated tasks with the end in view of an orderly repayment of the Company's debt obligations. SIGNATURES Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PHILIPPINE TELEGRAPH AND TELEPHONE CORPORATION Registrant By: (SGD.) GERARDO R. DE LEON Senior Vice President-Finance