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BENGUET DEFAULTS ON LOANS; NEGOTIATIONS WITH BANKS UNDERWAY

 MANDALUYONG, Metro Manila, April 2 /PRNewswire/ -- Benguet Corporation (NYSE: BE) reported that it has failed to pay interest as it came due on the company's debt, and thus is in default on its bank and long term debt. This followed the refusal of one of its short term bank creditors to renew a credit facility previously extended to the company.
 Anticipating that this non-renewal could start a chain reaction by other creditor banks, the company's board of directors declared a moratorium on the repayment of loans, and then the company stopped paying interest that fell due on its loans. Management and the creditors are pursuing discussions to ascertain the courses of action that must be undertaken to address the concerns of the creditors (which include securitizing their exposures, payment of interest as it falls due, and creation of an escrow fund, among others), and ultimately to renegotiate the terms of the loan agreements. A financial adviser has been engaged to formulate a loan restructuring plan which will be presented to the creditors for approval before the end of April 1993. The ultimate outcome of these discussions and possible courses of action that creditors may take cannot be determined at this time. There are courses of action available to the creditors that could impair the company's ability to continue as a going concern.
 Issuance of Benguet's 1992 financial results has been delayed on account of this matter. However, the company expects that its 1992 results of operations will be published by April 6.
 -0- 4/2/93
 /CONTACT: Robert V. Schnabel, U.S. counsel, Benguet Corporation, 202-638-2241/
 (BE)


CO: Benguet Corporation ST: IN: MNG SU:

MH-TW -- DC017 -- 2471 04/02/93 11:23 EST
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Publication:PR Newswire
Date:Apr 2, 1993
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