Erring company in Subic Freeport closed by SBMA | SubicNewsLink

18 August 2023

Erring company in Subic Freeport closed by SBMA

SBMA Chairman and Administrator Jonathan D Tan leads the closure and repossession of the Silver Arrow Import Export Services, Inc. on Wednesday due to contractual defaults made by the company.


Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan led the repossession of a 1,500-square meter land area from an erring company as part of the agency’s thrust to regain areas for reutilization for other investors.

“We are repossessing leased areas of companies that do not comply with the agreement between them and the SBMA, and offer these areas to other investors,” Tan said.

The repossession of property transpired today at the Silver Arrow Import and Export Services, Inc. located at Lot 1, Boton Area, Argonaut Highway. The 1,500-sqm. land area of the company was repossessed due to contractual defaults.

According to Tan, the company failed to comply with its Investment and Development Commitment as provided in Section 7, Article II of the Lease Agreement between the company and the SBMA. Part of the said default is the failure of the company to develop the area with a funding allocation of at least US$1,000,000.

He added that the development commitment on the Leased Property should have a minimum cost of US$500,000 which includes the construction of a warehouse within two years from the issuance of its building permit.

“Aside from the Investment and Development Commitment, the company’s contractual default also includes non-compliance with the Omnibus Policy on Performance Bond, and failure to submit documents for the issuance of a building permit,” he said.

The said building permit is for the construction of a warehouse as stated under the company’s Development Commitment. Tan added that this is so despite the unreasonable length of time that had already lapsed since the execution of the lease agreement last July 28, 2015.

The SBMA had already served two notices before executing the repossession, with the Final Notice of Default with Demand to Pay dated June 19, 2023 that was served on June 26, 2023; and the Notice of Pre-termination and Repossession dated July 28, 2023.

“We are following President Ferdinand Marcos Jr.’s mandate to streamline operations within the Subic Bay Freeport Zone, and fully utilize land areas that are not being developed. But we are leaving space on the table for negotiations with the erring company so that they may continue with their operations efficiently,” Chairman Tan said.

The official said that this is the first of many repossessions that the SBMA will conduct as the agency clamps down on erring companies who have skimped on their obligations to the SBMA. (MPD-SBMA)

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