Metro Pacific Investments Corp.

05/06/2022 | Press release | Distributed by Public on 05/06/2022 03:01

Legal Proceedings

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported) May 6, 20222. SEC Identification Number CS2006044943. BIR Tax Identification No. 244-520-457-0004. Exact name of issuer as specified in its charter Metro Pacific Investments Corporation5. Province, country or other jurisdiction of incorporation Metro Manila, Philippines6. Industry Classification Code(SEC Use Only) 7. Address of principal office 10F MGO Building, Legazpi cor. de la Rosa Sts., Legazpi Vill., Makati CityPostal Code07218. Issuer's telephone number, including area code (632) 8888-08889. Former name or former address, if changed since last report N/A10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares of Stock 29,554,782,752
11. Indicate the item numbers reported herein 9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Metro Pacific Investments CorporationMPI

PSE Disclosure Form 4-26 - Legal Proceedings References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Filing of Request for Arbitration by Light Rail Manila Corporation

Background/Description of the Disclosure

On May 6, 2022, Light Rail Manila Corporation (LRMC) filed a Request for Arbitration (Request) with the International Chamber of Commerce in respect of its disputes with the Republic of the Philippines, acting by and through the Department of Transportation (DOTr) and the Light Rail Transit Authority (LRTA) (the Grantors), consistent with the dispute resolution procedures under the existing Concession Agreement relating to LRT Line 1 (CA). The Request pertains to the adjustment of the approved fare for the years 2016, 2018 and 2020 and LRMC's claims for compensation relating to the Grantors' contractual obligations to compensate LRMC for: (1) the difference between the stipulated fare and the approved fare based on the schedule provided in the CA, following the Grantors' inaction on LRMC's application for fare adjustments based on the CA, and (2) the losses, costs and expenses incurred by LRMC for the Grantors' failure to deliver to LRMC the required number of light rail vehicles that meet the stipulated technical requirements under the CA and the structural defects on the existing LRT 1 system, both of which are required to ensure that LRMC is able to provide a safe, efficient and reliable service to the public as required under the CA.

As of March 31, 2022, LRMC's monetary claims for the abovementioned matters amounted to approximately Php2.67 billion, before interest, in addition to its application for the implementation of the long-overdue fare adjustments for 2016, 2018, and 2020. Despite compliance with applicable legal requirements and after exerting best efforts to amicably discuss the foregoing claims with the Grantors, LRMC has not received any offer from the DOTr and LRTA. In view of this, LRMC was compelled to deliver the Request to preserve and enforce its rights under the CA.

LRMC believes that the settlement of these claims is critical to enable it to continue to be viable and provide safe, efficient and reliable services to the public. Notwithstanding the dispute, LRMC remains committed in providing the best possible services to the public. In fact, despite the non-performance by the Grantors of their obligations and the non-payment of LRMC's claims, LRMC has implemented significant operational improvements, rehabilitation projects, and system upgrades to the Existing System and continued the construction of the Cavite Extension safely and efficiently. LRMC's achievements despite the challenges it faced can be seen from the fact that it currently maintains ISO 9000:2015 and ISO: 14001:2015 Certifications for the existing system and was able to achieve 20 million safe man-hours without a lost time incident in its facilities and business areas.

Name of the court or agency in which the proceedings are pending International Chamber of Commerce
Date Instituted May 6, 2022
Docket Number TBD
Principal Parties

Light Rail Manila Corporation and the Republic of the Philippines acting by and through the Department of Transportation and Light Rail Transit Authority

Nature and description of the legal proceedings

Arbitration

The effect(s) on the Issuer's business or operations, if any

Please see discussion under Background/ Description of the Disclosure. Moreover, LRMC's claim against the Grantors has no direct material effect on the business of MPIC.

Other Relevant Information

Please see attached SEC Form 17C.

Filed on behalf by:
Name Melody del Rosario
Designation Vice President