IBC 13 taps Romero group for property development

Manila Times 31 Mar 2010

BY DARWIN G. AMOJELAR

SENIOR REPORTER

In a statement, International Broadcasting Corp. (IBC) said the joint venture with RII Builders Inc/Primestate Ventures Inc. will pave the way for the development of the network’s 4.1 hectare property in Diliman, Quezon City.

The Presidential Commission on Good Government (PCGG), which has administrative control over the assets of the TV-radio network, as well as the Office of the Government Corporate Counsel, reviewed and cleared the project.

The new partnership will upgrade IBC 13’s technical capabilities and boost its programming, as well as develop its real property, as a special business venture.

IBC said these efforts are aimed at improving its standing in the industry, as well as addressing accumulated arrears in payments to suppliers, and outstanding benefits to its employees.

Under the joint venture agreement, RII will construct a new broadcast center that will house IBC 13 and another sequestered network, Radio Philippines Network (RPN 9).

“A substantial cash component will be advanced by RII from the share of IBC in the project’s earnings. These monies will be allocated to the settlement of benefits due to IBC employees,” the network said.

In its petition for corporate rehabilitation filed before the Quezon City Regional Trial Court, IBC said it was eyeing to enter a joint venture agreement with a partner who will infuse a total of P750 million. Of this amount, P650 million will finance retirement pay, unpaid employee benefits, unpaid real property tax, among others.

The network plans to reduce over- head by trimming its 280-member staff through retrenchment and retirement.

The joint-ventrue partner would also shoulder another P100 million for programming on the first year.

The network said its partner will earn an estimated P1 billion in 15 years.

For the second to fourth years, the network plans to spend P220 million to rehabilitate technical facilities.

At end-October last year, the network’s total liabilities amounted to about P1.58 billion. Of this amount, P1.06 billion is already due and outstanding, while P722.16 million is contingent.

At end-June last year, the network posted a net loss of P86.57 million.

The court, however, rejected IBC’s rehabilitation because of “technicalities” such as failure to provide report from Commission on Audit and change of business address.