Fontana Resort & Country Club's debt to CDC exceeds P203M as of Dec 2024, including unpaid lease payments, revenue shares, and penalties.
Fontana Resort & Country Club’s debt to the Clark Development Corporation (CDC) has surpassed P203 million as of December 2024, according to an official. The outstanding amount includes unpaid lease payments, revenue shares, and penalties.
This comes weeks after the CDC issued a cease and desist order on January 6 against both FDC and Fontana Resort and Country Club, Inc. (FRCCI) for violating their contracts. FDC and FRCCI are both owned by Chinese gambling tycoon Jack Lam.
According to CDC in an interview with Rappler, the figure is made up of unpaid minimum guaranteed lease payments, the required share of revenue from subleases, plus accumulated penalties and interest for failing to comply.
According to Noelle Mina Meneses, CDC Vice President for Business Development and Enhancement Group, this doesn’t warrant a move to find owners just yet, but a warning to ensure the companies meet their obligations.
“Unlike in the take over of BCDA (Bases Conversion and Development Authority) over the Camp John Hay in Baguio, CDC has merely issued a cease and desist order. Such CDO is a preliminary step to compel FDC and FRCCI full compliance with its financial and contractual obligations with the CDC,” Meneses said.
Otherwise, termination proceedings under the consolidated lease agreement will be initiated. However, if they ultimately fail to meet these obligations, the area's future development will depend on a new investor, aligning with the CDC's mandate for sustainable development and investment.
“If, despite the issuance of a CDO, FDC and FRCCI shall not fulfill their financial and contractual obligations, CDC shall, in accordance with the provisions of the consolidated lease agreement, initiate termination proceedings,” she added.
Read related article: Clark Authorities Shut Down Fontana Resort "Indefinitely"
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