JG Summit Holdings Inc. will take on all the debts of its struggling petrochemical unit, according to the company’s top official.
This comes as JG Summit’s board decided to put its P150 billion petrochemical plant in Batangas under prolonged shutdown of at least two years given persisting unfavorable market conditions in the global market.
“We have proactively transferred all of JG Summit Olefins’ debts to the parent company, JG Summit Holdings,” JG Summit president and chief executive officer Lance Y. Gokongwei during the company’s annual stockholders meeting said.
As of end March 2025, JG Summit has a net debt of P254.6 billion
JG Summit Olefins Corp., meanwhile, has P59.9 billion term loan maturing in 2025 to 2029.
“The petrochemical plant will remain on a prolonged shutdown for at least two years, given persistent challenges in the global petrochemical space,” Gokongwei said.
As part of the shutdown, Gokongwei said JGSOC will also implement will also be laying off workers.
Gokongwei said the company has instituted an employee care program to aid affected individuals in this transition.
Meanwhile, the company said Peak Fuels, its LPG trading arm, will stay open.
“All these actions enable us to focus on preserving our assets in Batangas and on evaluating various strategic options for the business, while ensuring that all our obligations to our creditors are met.”
