BLTB: The other version

[Balita News]

A CASE of seller's remorse.

That was how BLTB investor Benjamin Bitanga described his
much-publicized troubles relating to his majority purchase of the
Batangas Laguna Tayabas Bus Co. from the Potenciano family
and the subsequent rescission of the sale contract.

According to him, BLTB matriarch Dolores "Dolly" Potenciano
was, right after the signing, torn between her contractual
obligations with the Bitanga group and her children, who
wanted to keep BLTB in family hands.

What apparently was signed by the Potencianos and the
Bitanga group on Oct. 28, 1997, was a deed of absolute sale of
shares and a declaration of trust, not a mere memorandum of
agreement as what the Potencianos now claim.

Mr. Bitanga (BSBM Ateneo 1973, MBA AIM 1977; chair, Asian
Appraisal Holdings; chair/president, Colliers Jardine
Philippines; chair/president, MAB Real Estate Corp; director,
PGA Cars) also claimed that:

l He was unable to free the personal properties of the
Potencianos held by Allied Bank and to retire more than P500
million in debts by BLTB from the same bank within 60 days
from document signing.

Reason? Allied Bank "refused to accommodate an arrangement
where the said assets would be released until all the
outstanding obligations of BLTB to the said bank have been
paid in full."

This failure was cited by the Potencianos as a ground for the
rescission of their agreement with the Bitanga group.

l The P200 million he allegedly illegally withdrew from BLTB
may be accounted for in this manner: P119 million "security
device" for the planned purchase of 100 buses from Columbian
Motors and P20 million for partial payment for the same.

Another P30 million was paid as an "advance" to a Sucat
property eyed as a BLTB garage site.

The balance of P31 million went to salaries of Bitanga and staff
seconded to BLTB, as well as other incidental expenses.

l The Bitanga group even advanced nearly P47 million to BLTB
from December 1997 to March 1998 for its day-to-day
operations.

What is alarming is that both the Bitanga and Potenciano
groups, despite their differences, acknowledge that the
80-year-old bus company is on the brink of bankruptcy.

BLTB has only P100 million in authorized capital yet it is
swimming in P1.3 billion in indebtedness. It lost P405 million in
1997, after posting P393 million losses the year before.

And it needs to raise about P200 million a year for debt service
alone.

Clearly, BLTB needs a white knight who would provide fresh
working capital to keep it afloat, even after the bus company
may have parlayed its Pasay terminal into cash.

The 3.1-hectare property along Epifanio de los Santos Avenue
was appraised at P1.5 billion before the currency crisis. At
today's depressed market, proceeds from the planned sale
would be barely enough to wipe off BLTB's indebtedness.

* Baguio bash

FIREWORKS are expected in Sunday's annual stockholders'
meeting of the cash- and asset-rich Baguio Country Club. The
various contending blocs (lifetime chair/president Potenciano
Ilusorio, son Ramon Ilusorio, and Juan Carlos del Rosario-Jose
Roman Ozaeta) are each bringing in top corporate lawyers from
Manila.

A team from the Securities and Exchange Commission is
motoring as well, to observe the proceedings.

One item in Sunday's agenda: "Filing of a case against Francisco
V. del Rosario Holdings Inc., Francisco V. del Rosario, Diaz
Murillo Dalupan and Associates, Romulo Mabanta
Buenaventura Sayoc and De Los Angeles, and Cynthia
Roxas-Del Castillo for recovery of personal property and
damages."

* Heard through the grapevine

FIL-ESTATE and the American construction giant, Fluor Daniel,
have parted bitterly over Fil-Estate's still unfinished golf and
resort project in Boracay, Fairways and Blue Water. A
courtroom battle is likely.

* * *

LESS than a year after losing the head of its Treasury
Department, Sergio Edeza, the Bangko Sentral is again losing its
treasury chief, Edeza replacement Eileen Bautista.

Ms. Bautista, who has gone on leave, would only give "family
reasons" for wanting to leave the prestigious position; the wide
gap between Bangko Sentral's pay and the private sector's is
also proving to be a disincentive to stay.

(Philippine Daily Inquirer )