Rohan Douglas writes how Manny Villar stymied creditor efforts to force a restructuring or foreclose on C&P properties
Contribution by: Anonymous in the City
This book was written by Rohan Douglas, Credit Derivative Strategies: New Thinking on Managing Risk and Return.
Rohan Douglas, editor of this volume, is the founder and CEO of Quantifi Inc., a leading provider of pricing models and risk analysis tools for structured credit. He has more than twenty-five years of experience in the global financial industry. Prior to founding Quantifi, he was the director of global credit research at Citigroup and Salomon Smith Barney where he worked for ten years. Douglas has worked in interest-rate derivatives, emerging markets, and global fixed income. He is also an adjunct professor in the graduate financial engineering program at Polytechnic University in New York and at the Macquarie University Applied Finance Centre in Australia and Singapore.
Villar appears on page 30 of the book:
“If companies reside in countries where bankruptcy laws are unreliable and they do not have a compelling reason to restructure it can often be impossible to force a restructuring or gain control of the company’s property.”
“One example was C&P Homes (C&P), a Philippine corporate property developer of low-end housing. The company owned a substantial amount of land around Manila and had issued dollar-denominated debt to finance its land purchases and to develop the land. However, when the Asia crisis occurred, land values collapsed and the company ran out of cash. The company suggested a restructuring under which creditors would have taken a large haircut. Creditors explored legal avenues to foreclose on C&P’s holdings. However, despite spending substantial time and legal fees on these efforts, creditors were unable to gain control of company property or force liquidation because of the lack of reliable bankruptcy laws in the Philippines. C&P’s controlling shareholder was Senator Manuel Villar who was able to use his position to further stymie creditor efforts to force a restructuring or foreclose on C&P properties.“
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reynz is one Uragon and a Filipino-American, has many years of public accounting & auditing, broadcast investments, housing tax credits and equity investments as his background. Based in the US, he maintains his personal and humor blog at reyna elena dot com. A graduate of Aquinas U, he went to GWU and Temple U in the United States.
Wala talaga lumabas lahat hindi maganda kaya sana tulong tulong na mga pilipino, huwag na magsisisihan pilitin bumangon sa pagkasadlak sa sobrang kahirapan dahil sa sobrang kadayaan. Kung maiisip lang ng madami na hindi dapat pakainin ng nakaw mga ank at lalo na mga apo ninyo, sila makakarma, in the end, iiyak kayo ng dugo tulad ni godfather, isn’t it the gist of the story is u will reap what you sow, di po ba ganoon wala lusot sa diyos may karma po palagi sa huli kung kailan wala ka na magagawa kundi lumuha ng dugo dahil sa mga pinaggagawa mo.
Hi Reinz, can we repost this at noypi-ako.com blog site?
Sure Engr. Jojo. Just make a note that it was a contribution coming from a B7 reader. I don’t want your readers to think that it came from me. Thank you!
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Kaya nga hindi ako naniniwala sa infomercial niya na tutulungan niya ang bawat Pinoy na magkabahay.
FYI…
Ang isang House & Lot po sa Camella ay nagkakahalaga ng P3.7 million. Lot area lang nito ay 74 sq.m!
Now, tell me kung kaya ba itong bilin ng mga pangkaraniwang Pinoy ngayon ha? Lalo na yung sumubok lumangoy sa dagat ng basura!
hahaha P3.7 million? low-cost housing? magkano ang average salary? amortize natin ang P3.7 million at 18% interest for 10 years, paki-compute nga hahaha am sure yong monthly nyan indi kaya nang average employee. also tandaan mandatory na ang PAG-IBIG membership right?
@reynz – kapag nasa P3.7mil yung house sa camella. dapat daw nasa P120k yung gross monthly salary.
you are correct, P66k ang monthly amortization.
now the question is: kaya ba? hindi lahat kayang mag-avail kasi hindi lang naman puedeng ibuhos ang buong pera sa bahay.
may ilaw, tubig, tuition fee ng anak, groceries, everyday expenses etc. idagdag mo pa yung monthly fee sa subdivision dahil may guardiya, maintenance at all the works!
i hope you get my point.
P120k per month? hahaha eh nung ininterview ako dyan sa Manila, yong isa was P100k daw, yong isa naman was P60k, pucha eh kung natanggap pala ako dun, so di ko pa rin kaya sa kanila hehe
anyway, me bagong numbers dun na binigay si romnick, P895k amort is only P16k which is affordable na. 2br 1bath daw, sa cavite, pag pasig daw malelechehan ka sa mahal hahaha
Correct indeed mother. May 16k nga pero, not all wants to live in Cavite or Laguna lalo sa mga tubong Maynila talaga…
Hmmm, I would suggest na instead of patronizing Camella Homes gawing alternative ng iba yung mga DMCI Projects along Metro Manila. Kasi affordable ang low-rise condominiums nila, a unit is ranging from 48sqm to 60sqm.
A couple can get a P2.4mil condo with downpayment of P30k+ in 18 months and then, P24k+ in 10 years. Bank financing ito ha?
Suggestions lang po.
Its, 66,674 per month Reynz.. Heheheh.
thank you very much Lani hahaha! wala kasing lecheng Excel ang laptop ko hehehe!
anyway, back to the discussion. amortization pa lang yan ha? wala pang taxes, utilities kahit wala nang entertainment, kahit makikain ka na lang sa neigbor mo, kahit di ka na maligo.
ang average Filipino ba makakaya ang P66,674 PER MONTH na pambayad sa LOW COST HOUSING na to?!
Well, makasabat lang ulit. May low-cost housing nga siya pero nasaan? Nasa mga probinsya, di ba? Eh paano yung mga taong ang bread and butter ay nasa Manila area.
@romnick: on your comment na medyo mapapamahal nga lang yung mga mag-aambisyon sa alabang at pasig.
yun na nga eh, kaya nagmahal kasi parang overpricing na kapag city na yung lugar! hindi makakaya ng isang pangkaraniwang executive sa makati yung amortization na yun noh? by the way, ang requirements nila dapat nasa P120,000 yung gross monthly salary nung kukuha ng isang 74sqm na bahay (pinakamaliit na bahay) kapag sa bandang pasig, alabang, taguig at las pinas…
no wonder ang pinapa-mindset ng camella homes before sa mga tao ay:
‘di bale na magdildil sa asin basta may bahay!’
i hope you get my point romnick
mawalang-galang na po…
na-curious lang ako sa presyong P3.7 Million para sa isang low-cost housing sa ating bayan kaya pinuntahan ko ang Camella website…
http://www.camellahomes.net/newprojects.php
“location, location, location…” meron naman pala silang halagang P895,418 sa bandang cavite (2BR, 1Bath), medyo mapapamahal nga lang yung mga mag-aambisyon sa alabang at pasig.
‘sensya na, na-kyuryus lang po.
Ok, sandali lang, amortize naten tong P895k… same thing, max of 10years at 18% (ayuff tlaga ang interest sa Pinas! Grrr!)
Ayan Romnick! P16k na lang! (Again, please ignore the $sign na lang) Pag P60k NET a month ka, kaya na yan. Tama ba?
…one more thing, pating…
ma’am lani, na-double nyo po yung monthly ng para sa P3.7M…P36,383.33 lang para sa 18% interest, 10 years.
again…napa-check lang po ako dahil interesado ako sa kasalukuyang presyuhan sa atin ngayon. no offense intended.
Actually Romnick, I double checked the computation, tama yong P66k per month. Let me capture and post the calculation. Sandali lang… Eto na sya – please ignore the dollar sign na lang…
Now, as I said, sa P66k per month, dapat 2 earners at least para tig P33k each. Question, kaya kaya?! Understand, again as I have said above, me utilities – water, meralco, phone, food, whatever. So 2 earners is not possible, kelangan more. Korek?
reynz,
salamat po sa info, absent yata ako nung itinuro yan. eto lang yung ginawa kong pagbilang:
P3,700,000 + 18% = 4,366,000 dibaydibay 120 (10 years) = 36,383.33
mas high-tech yung sa inyo=) salamat po uli.
mula nung naglabasan ang mga macro, nakalimutan ko na mga dibay dibay haha
dapat, lahat ng negosyante, may ganyang ability..
kapag nakakita ng butas, go for it.. oportunista.. yun bang kikita ka pa rin kahit palugi na ang negosyo mo..
hindi lahat ng negosyante e edukado gaya ni villar. kulang pa sa training.. hindi malayong may 66k a month ka kung marunong ka.
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