Posted 4 months ago
SUBIC BAY FREEPORT—A new company has taken over the operations of Lyceum of Subic Bay Inc. (LSBI), allowing the debt-ridden firm to pay more than P31 million in overdue rentals and other arrears to the Subic Bay Metropolitan Authority (SBMA) and to honor its development commitments for its two campuses here.
|photo c/o lyceumsubicbay.com.ph|
SBMA Administrator and CEO Wilma T. Eisma said the SBMA, through a board resolution, has approved the reassignment of LSBI’s leasehold rights to Premium Technical Training and Facilities Inc. (PTTFI), which assumed the financial and developmental obligations of the original lessee.
The PTTFI is 30-percent owned by LSBI.
“As far as we can see, this is a win-win solution to a problem that has been hounding the SBMA since October 2015, when it preterminated the contract of Global Daeil, over the Cubi property,” Eisma said.
Eisma added the SBMA repossessed the property in January last year and later awarded it to Lyceum, which had the best business model.
“Unfortunately, Lyceum was not able to operate immediately and market the business properly because of some issue with the previous occupant, so we had a problem that compounded itself over time,” she said.
Eisma added the compromise agreement was made possible with the withdrawal by LSBI from coverage of the SBMA policy-granting educational institutions a 75-percent discount on rentals, which are to be plowed back to scholarship programs and facilities improvement.
Under the new agreement, PTTFI took over the 34,196-square-meter Lyceum campus at Subic’s Cubi-Triboa District, which had P23 million in rentals and utility fees arrears, as well as P16.68 million in unpaid accounts left by its previous operator, Global Daeil Subic Inc.
The deal also required LSBI to pay its debts for the Lyceum campus at Subic’s central business district (CBD).
The new operator initially paid the SBMA P31 million for the arrears, and issued checks to cover outstanding obligations for both the Cubic and CBD campuses.
Beatrix Anagaran, manager of the SBMA General Business and Investment Department, said the amended lease and development agreement for PTTFI was “overwhelmingly beneficial to the SBMA”, as it called for an increase in monthly rent from the discounted rate of P1.22 million to the appraised-value rate of P4 million.
The agreement also provided for an increase in escalation rate from 2 percent per annum starting on the third year to 6 percent per annum starting the second year.
Anagaran said upon taking over the Cubi property, Premium Technical, likewise, committed to pay the P16-million debt of Global Daeil within a three-year amortization period, and retained LSBI’s committed investment of P50 million to P100 million, a committed employment of 180 workers, a development commitment of P10 million to P20 million, and the provision of 36 scholarship grants per year.
She said the new operator also committed to put up a business process outsourcing (BPO) facility at the Cubi campus, as well as a modern training laboratory.