First Generation Holdings Corporation (FGEN)

[jackofalltrades]

I believe that EDC's value, holding everything else constant, should be less affected than FGEN. There may be some trickle down effect from FGEN though, with the management getting undue pressure to provide cash upwards ultimately to the parent company BPC.

How should this affect EDC? The dividends going to be upstreamed may stunt the growth potential of the company, going forward. Also, management may be busy fending off attacks from the government and competition while losing focus on core operations of EDC.

I think the same goes for AIG and Philam. If you notice, our papers are being bombarded by ads from the local affiliate of AIG, which obviously is a "firefighting" activity.

Bottomline is that EDC should be affected minimally if management just keeps its focus on its own operation and expansion plans.

[Fish]

Oo nga no, i saw a similar opinion here re milking edc profits by having it declare dividends. I wish it were as simple as another investor trying to buy it thus bringing the price higher. Oh well, back to FGEN. Thanks Sir Jack!

[khupz]

good point Jack..but I just sold 2day, mejo parang hirap kasi sya i-break the 19.25 level eh. for the meantime I'll just trade this stock...but I still believe with the company and I'll buy this again once it corrected.

[theven]

First Gen planning fund-raising efforts

By Honey Madrilejos-Reyes
Reporter


FIRST Gen Corp., the holding firm of the Lopez group for all its power assets, may offer new shares or convertible notes this year to raise funds for debt payment, in addition to selling off some assets and economic interests.

At the sidelines of the Management Association of the Philippines (MAP) International CEO Conference Tuesday, Elpidio Ibañez, president of First Gen’s parent firm First Philippine Holdings Corp. (FPHC), said the power firm is “eyeing to sell a substantial amount” of new shares or notes, but did not elaborate on the details.

http://www.businessmirror.com.ph/100820 ... ies01.html

[Mark T. Market]

PEP:

Mr. Ibanez, President of FPH, said they will secure a US$700mn loan to refinance maturing debt in Nov-08. He was referring to the debt to be raised by Sta. Rita in place of maturing FPH loans. Ibanez said talks are still ongoing with 3 groups for a 40% share in Red Vulcan. The CFO, Giles Puno also said that there is strong interest in Pantabangan-Masiway and that FGEN is also looking to sell shares via private placement. This part about a share sale is new.

[Mark T. Market]

Deutsche:

5) First Gen may issue shares convertible; says foreign, local firms express interest in Pantabangan
- Based on media interview with FPH's president Elpidio Ibanez
- First Gen may offer new shares or convertible notes this year
- We believe this cannot be accomplished in this environment
- Unless FPH were to buy the entire issue
- target is to raise US$700m to further reduce debt
- to pay off maturing debt in Nov (US$435m)
- also in negotiations with 3 potential investors to acquire 40% of Red Vulcan
- is also considering selling its 112 MW Pantabangan-Masiway hydro plant
- expects to sell it for higher than acquisition price (US$129m)

[sharksfin]

the difficult environment may prove a big challenge for first gen. they need to raise money for their debt, find a buyer for edc, find buyers for their commercial papers. too much headache.

[miner]

from a relax and calm position last month, now turning to prayers for hope due to very tight credit markets


danger sign is ON

[Louie]

First Gen’s $442M loan matures in less than a month

The Lopez Group once again is in a bind after aggressively buying government assets.

For the third time, the group are letting go of assets bought from the government. Will Manuel V. Pangilinan again come to their rescue?

Pangilinan bought Maynilad Water Services Inc. after the Lopez Group surrendered the concession to the government.

A couple of months back, Pangilinan bought the tollway operations of the group for over P12 billion.

This time, the Lopez Group, is selling the Panta-bangan-Masiway plants to pay off debts maturing in less than a month.

First Gen needs to pay banks close to $442 million by November 20. In 2001, a bank came close to declaring the group in default at the height of the Maynilad problem. A study done by the central bank in 2002 showed that the group accounted for 20 percent of past due loans in the system.

First Gen’s funding problems could not have come at a worse time considering the current global turmoil.

"It will be a lot more difficult to raise financing right now", an industry leader said, "so they are at risk. With default and cross defaults their problem might affect banks, "he added

http://www.malaya.com.ph/oct14/busi1.htm

[analysisparalysis]

"It will be a lot more difficult to raise financing right now", an industry leader said, "so they are at risk. With default and cross defaults their problem might affect banks, "he added

Just observe the global trend right now. Everyone is pointing their finger at the failure of Lehman as the primary cause for the market crash. So, governments worldwide have started assuring everyone of their financial systems through direct guarantees.

The mantra "it's too big to fail" is alive and well. The same will be true for FGEN.

[fujiko]

With the US and European Central Banks starting to flood dollars in the banking system, there is a better chance for a refinancing of the loan.

Better yet, potential investors might do a Warren Buffet, invest in a 10% Convertible Preferred Stock.

Just Speculating...

[miner]

I think also it is Too Big to Fail

[sharksfin]

will someone post the financial institutions who loaned them ? are they domestic or international, if you dont want to name specifics. lets see if MVP will save them again for the Nth time or will they find a new buyer or will they find a strategic investor or will they issue commercial paper-but who will guarantee this crap?