PH Resorts Group Holdings Inc. has permanently closed Donatela Resort & Sanctuary in Panglao, Bohol, as part of a broader restructuring with parent Udenna Corp. aimed at addressing legacy obligations.
The company said its wholly owned subsidiary, Donatela Hotel Panglao Corp. (DHPC), ceased operations at the end of Wednesday, Sept. 30 and will turn over the property to Land Bank of the Philippines.
The closure follows extrajudicial foreclosure proceedings involving the land and improvements comprising the resort. The property had been mortgaged as collateral for DHPC’s loan obligations with United Coconut Planters Bank, now LandBank.
DHPC has not yet received the official Certificate of Sale from the appropriate court but will proceed with the closure and turnover of the property, PH Resorts said.
The development is tied to a proposed restructuring under which PH Resorts will transfer its entire ownership interest in PH Travel and Leisure Holdings Corp. to Udenna.
PH Resorts said the restructuring is intended to relieve the company of legacy obligations. Once approved and implemented, the closure of Donatela is not expected to have a material impact on the company or its financials.
The resort’s shutdown marks the loss of one asset from PH Resorts’ leisure portfolio, but the company framed the development within a larger effort to simplify its obligations and corporate structure.
Donatela’s doors are closed, while the property moves into the next stage of its foreclosure and turnover process.
