BHI writes off losses from Friday’s Boracay unit
Panlilio-led Boulevard Holdings Inc. (BHI) dropped from its consolidated financial statements Crown One Land Inc. (COLI), its 50-percent-owned company that owns part of Friday’s Boracay Beach Resort, as it wrote off losses from this unit.
In a Sept. 12 disclosure to the Philippine Stock Exchange, BHI said that it had fully written off losses from its investment in COLI amounting to P70.43 million.
Crown One will be deconsolidated from its reporting of consolidated financial statements effective May 31, the disclosure added.
“This conclusion was reached as COLI has remained non-operational and BHI no longer has the practical ability to participate in or influence its decision-making, nor access to reliable information on its activities and assets,” the disclosure said.
Incorporated in 1990, COLI owns 44 percent of Friday Holdings Inc. (FHI), operator of Friday’s Boracay Beach Resort.
Reconstruction
The resort on Boracay Island, however, was demolished in 2023, which the group intends to reconstruct.
Based on its annual report filed on Sept. 30, 2024, BHI said that “Friday’s Boracay Resort is looking for possible opportunities for its reopening.”
“Following the loss of control over COLI, no consideration was received and no retained interest remained,” the disclosure said.
“Management evaluated the recoverability of the carrying amount of its investment in COLI and considering the absence of contractual rights over future cash flows, the lack of legal claim or residual interest in the net assets of COLI and the inability to exert significant influence to obtain future economic benefits, BHI recognized a full write-off of the investment in COLI amounting P70.43 million in its separate financial statements,” it added.
A board resolution was passed on Sept. 9 recognizing loss of control over COLI, along with the deconsolidation and write-off of investment.
BHI is the beneficial owner of 77 percent of FHI equity. It directly owns 55 percent, while 22 percent is indirectly owned through COLI.
The company also has an interest in Fridays Puerto Galera Inc., which owns and operates Friday’s Puerto Galera Beach Resort in Oriental Mindoro.
