PH RESORTS Group Holdings, Inc. (PHR) has shut down Donatela Resort & Sanctuary in Panglao, Bohol, after the property became subject to extrajudicial foreclosure proceedings.
In a regulatory filing on Thursday, PHR said its wholly owned subsidiary Donatela Hotel Panglao Corp. (DHPC) ended the resort’s operations on Sept. 30.
The land and improvements comprising the resort had been mortgaged as collateral for DHPC’s loan obligations with United Coconut Planters Bank, now Land Bank of the Philippines (LANDBANK).
“The land and improvements comprising the Hotel, which were mortgaged as collateral for DHPC’s loan obligations with United Coconut Planters Bank (now Land Bank of the Philippines), were subject to extrajudicial foreclosure proceedings,” the company said.
DHPC said it had not yet received the official Certificate of Sale but would turn over possession of the property to LANDBANK following the closure.
The shutdown comes as PHR and its parent Udenna Corp. pursue a proposed restructuring.
Last month, PHR said it was targeting a return to positive stockholders’ equity within two years through a restructuring that would transfer its interest in PH Travel and Leisure Holdings Corp. to Udenna.
PHR said the restructuring is intended to address legacy obligations.
The company also said the closure of Donatela Resort would not have a material impact on its financial position once the restructuring is approved and implemented. — Alexandria Grace C. Magno
