Note: Copy of mortgaged collateral on folder

BRIEF BACKGROUND
On 25 March 2014, the Board of Directors approved the loan the Seventy Five Million (P75,000,000.00) application of Asephil
Manufacturing Corporation consisting of Sixty Million (P60,000,000.00) Term Loan and Fifteen Million (P15,000,000.00). The
Term Loan account was used for the construction of 2,500sq.m. port pad with access, building and equipment for corn bulk
handling and storage processing and transportaion. It is payable in eight (8) years with eight percent (8%) interest rate. On the
other hand, the Revolving Credit Loan Line was used as initial working capital both for port operation and ZGI to be used to
finance _production inputs. It has a 180 days PNs with eight percent (8%) interest rate. On March 2016, both accounts turned
Past Due. /On 11 May 2016, the Board of Directors aaproved its Loan Restructuring but did not materiaized due to non-
compliance on the documents to be submitted by the borrower. On 09 December )016, the Lending Committee approved the
endorsement of the account to the Remedial and Asset Management Department. On 7 August 2017, the client requested to fully
settle Asephil ZGI obilgation via Dacion he Pogo but the bank denied the approval of the cited request. Another issue also is
the un-cancelled annotation of BDO loan to the mortgaged property that was overlooked during the time of loan packaging. It
has nothing to do with the Dapitan property but the bank is still holding the issuance of the certificate of cancellation since
one of his previous partner has an outstanding loan with the bank and he is one o the co-borrower. On March 2018, the Lending
Committee approved the endorsement of the account to Legal Services Department. Main also sent letters to Mn. Asenieo to submitt
the Cancellation of Mortgage from BDO and Realty Tax Payment Receipts for 2015, 2016 and 2017. On 23 March 2018, Legal
Services Department sent Final Demand Letter to the client. 00 26 April 2018, Main Branch together with Atty. Ramon Avengoza
has a meeting with
the client. In the meeting, client committed to submit Cash Flow Projection and Loan Proposal for Restructuring and to pay the
bank Four Million Pesos (P4,000,000.00) as partial payment. On 6July 2018, Main Branch again has a meeting with client to
follow up his commitment.
ISSUES/REMINDER

On 18 July 2018, Arnanah Islamic Bank wrote a letter to President/ CEO Renato E. Eje inforrning the bank that they are now in collaboration with
ZDMC Grains Inc. in developing a large- scale corn supply chain project. Per phone conversation, Mr. Gerorge Asenieo inforrned Ma'arn These
Urbino that Amanah Bank is processing the fuMng arrangements in view of the large expansion of the project. According also to him, it may
take two (2) months to conclude as funding comes frorn Bahrain. Mr. Aseniero was adviced to officially communicate such information to Legal
Department handling the account considering that it is under Remedial Management. Awaiting for such letter frorn the cilent.

DOCUMENTS FOR TRANSFER

Original documen. were already transferred to CDD.

Endorsed to :
Not Ad by:
Prepared/Endorsed By:

AVP Alan N. Orogo

. ,her sa C. Urban°
Loten DC Carpi WO_ hAl A / Main Branch Lending Group