MANILA, Philippines — PH Resorts Group Holdings Inc. (PHR), the hospitality arm associated with Davao businessman Dennis Uy, is seeking to expand its authorized capital stock by 150 percent—raising it from ₱8 billion to ₱20 billion—as part of a broader corporate overhaul meant to eliminate its capital deficit.
In a regulatory disclosure submitted to the Philippine Stock Exchange (PSE), the company outlined its recovery timeline following the financial reorganization.
“The company targets to restore PHR’s stockholders’ equity to a positive position on or before two years from the date of this report, following completion of the proposed restructuring,” PHR stated in its filing.
The corporate plan centers on deconsolidating operating entities managed under PH Travel and Leisure Holdings Corp. (PH Travel), a move intended to significantly scale down the group’s overall liabilities.
PHR noted that the recovery efforts rely on continued financial backing from its parent firm, Udenna Corporation, streamlined corporate overhead costs, and management’s pursuit of equity-generating opportunities.
However, the firm cautioned that the target schedule carries inherent risks. PHR acknowledged that achieving positive equity within two years depends on executing final agreements, securing necessary shareholder and regulatory approvals, and navigating unpredictable market conditions.
The core restructuring strategy involves clearing intercompany balances, transferring PH Travel away from PHR to Udenna, and settling debt obligations. The shift aims to simplify PHR’s corporate footprint, reduce consolidated debt, and eliminate the main drivers behind the firm’s negative balance sheet.
“A significant component of the restructuring plan involves the proposed separation of PH Travel and its subsidiaries from PHR. Under the proposed restructuring, Udenna intends to acquire PHR’s ownership interest in PH Travel through the settlement of outstanding advances payable by PHR to Udenna,” the company elaborated.
PH Travel holds the equity in entities managing major developments, including:
- Mactan Integrated Resort: LapuLapu Leisure Inc. and LapuLapu Land Corporation.
- Clark Leisure Project: Clark Grand Leisure Corporation, whose resort license was previously revoked.
- Boutique Hospitality Units: Donatela Hotel Panglao Corporation and Donatela Resorts and Development Corporation.
- Davao Operations: Davao PH Resort Corporation (DPRC).
DPRC currently holds 3,134 square meters of commercial land in Azuela Cove, Davao City, earmarked for a mid-rise serviced residence and hotel project. Furthermore, company executives are conducting due diligence to acquire complementary beachfront property in the Island Garden City of Samal, accessible via boat and the under-construction Davao-Samal Bridge.
Management is evaluating a property-for-share swap arrangement to help fund the upcoming Davao developments.