BIZ BUZZ: Phoenix, Lucio Tan units settle dispute
After months of legal wrangling, the Lucio Tan group has entered into an amicable settlement with Phoenix Petroleum Philippines Inc., giving the petroleum product distribution company led by Davao-based Dennis Uy conducive space to continue its operations.
To recall, Absolut Distillers Inc. (ADI) and Asian Alcohol Corp.(AAC), both LT Group affiliates, had complained to the courts about the supposed failure of Phoenix to pay its bill running to almost P160 million despite numerous demands, leading to the issuance of a writ of preliminary attachment by a Batangas court.
With the writ came garnishment notices served on Phoenixs depository banks which had the effect of freezing the accounts of Phoenix, thus preventing it from withdrawing any cash.
But alls well that ends well as ADI and AAC have accepted Phoenixs reasonable payment plan, and thus agreed to withdraw cases pending in courts.
This way, Phoenix can comply with its commitments under the payment plan and address its obligations to other creditors.
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