Benguet Corporation Becomes Debt Free After 35 Years

Publicly listed company, Benguet Corporation (BC), has declared cash dividend on its Common Stock at P0.20 per share and P0.28 for its Convertible Preferred Stock payable starting December 10, 2024, with record date of November 14, 2024. It is the first time after 35 years that BC will be paying dividends to its stockholders and the first management action after BC became "debt free" following resolution of all its outstanding debts.

The signing of the Mutual Rescission Agreement with regard to its restructured loans upon the approval of the Board of Directors marked the end of a three-decade long debt and mortgage indenture. The deal was structured with its remaining creditors, Wilshire Business Consulting Corp. and Armstrong Capital Holdings Corp., which opted for direct settlement and leveraging for investment of their respective debts.

Atty Lina Fernandez, President of Benguet Corporation, stated that "The termination of the 1993 Debt Restructuring Agreement and Mortgage Trust Indenture is the culmination of management's long and hard struggle to free the Company from its outstanding debt liabilities that have for more than 30 years subjected it to hardship and constraint of operation."

This year's positive development on the debt issue has finally relieved the Company from the negative restrictions of the restructured loans that have limited its ability to grow in the past and to deliver on its promise to bring value to shareholders. Now with improved creditworthiness and clean balance sheet, BC can resume capital market activities and engage investors in undertaking new projects and expansion of existing operations that will create new revenue streams for the Company and will hopefully lead to future dividend payouts. As BC embarks on a new chapter, it will continue to deepen its foothold in the mining sector as well as built up its portfolio in new business ventures like agriculture, real estate, bulk water and renewable energy.

Benguet Corporation (BC) is the oldest mining company in the Philippines and recognized as the pioneer in mining. Established on August 12, 1903, as Benguet Consolidated Mining Company, its 120-plus years of existence is a testament to its adaptability and resiliency in the face of changes brought about by global events, wars, natural calamities, economic conditions, and industry trends.