C05790-2017

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)
Sep 25, 2017
2. SEC Identification Number
CS200411461
3. BIR Tax Identification No.
232-715-069-000
4. Exact name of issuer as specified in its charter
Megawide Construction Corporation
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
2/F Spring Bldg. Arnaiz Ave. cor. P. Burgos St., Pasay City, Metro Manila Postal Code 1300
8. Issuer's telephone number, including area code
655-1111
9. Former name or former address, if changed since last report
Not applicable
10. 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 2,138,577,497
Preferred 40,000,000
11. Indicate the item numbers reported herein
Item 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.

Megawide Construction CorporationMWIDE

PSE Disclosure Form 4-13 - Clarification of News Reports References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Clarification re: Megawide seeks P800m from FLI
Source Manila Standard.net
Subject of News Report Megawide seeks P800m from FLI
Date of Publication Sep 24, 2017
Clarification of News Report

This is to clarify the news article entitled “Megawide seeks P800m from FLI” posted in Manila Standard.net on September 24, 2017. The article reported in part that:

“The rift between construction company Megawide Construction Corp. and client Filinvest Land Inc. has become more intense, with Megawide considering a legal action to demand payment for roughly P800 million in receivables from various projects it delivered to the property developer controlled by the Gotianun family.

FLI said it was also demanding payment from Megawide for its failure to complete several projects.

Megawide chief finance officer Oliver Tan said the company had been trying to collect around P800 million worth of receivables for more than a year now from five construction projects it completed for FLI.

Tan said the five projects, mostly high-rise buildings, had been completed, turned over to FLI and were now being occupied by FLI customers.

Tan said the issue stemmed from the claim of Filinvest Group that Megawide failed to deliver the projects based on the agreed timetable.

‘What they are saying is we did not complete the projects in time as per the contract. However, in our agreements, there are time extensions approved during the implementation of the projects. So we have new turnover schedule based on the approved extension and we are well within the approved new turnover schedule,’ Tan said.

‘We already endorsed this issue to our legal department for appropriate action because we have been following it up with FLI for quite sometime. We sent several demand and follow-up letters,’ he said.

FLI said in a statement sent to Manila Standard Megawide was the one liable for damages over ‘delays in construction and abandonment’ of five projects.

‘It is Megawide, not Filinvest, that is liable for damages because of its delays in construction and
abandonment of five Filinvest building projects,’ FLI said, when asked to comment on the issue.

‘Filinvest had to take over these projects to ensure completion, which resulted in substantial liquidated damages and other actual damages for costs of rectification, take-over works and lost
income. Filinvest has already demanded payments from Megawide to no avail,’ FLI said.

‘Further, Megawide, in its recent letter to Filinvest has expressed its intent to discuss an amicable settlement. It seems however, that they now prefer to discuss the issue outside of the proper legal forum. In any case, Megawide’s delays in construction and abandonment of the projects are well-documented and Filinvest is ready to prove these before the proper forum,’ FLI said.

Tan said it was the first time that Megawide had experienced this issue over the 20 years of its operations.

Tan said Megawide was willing to settle the issue amicably and that the filing of a legal case against FLI would be a last resort.

. . . .”

We confirm that Megawide Construction Corporation (Megawide) had been trying to collect around P800 million worth of receivables for more than a year from five (5) construction projects it completed for FLI. The five (5) projects, mostly high-rise buildings, had been completed, turned over to FLI and were now being occupied by FLI customers.

We confirm that there were time extensions approved during the implementation of the projects. The new turnover schedule was based on the approved extension and well within the new turnover schedule.

We confirm that the issue had been endorsed to Megawide’s legal counsel for appropriate action. Megawide had sent several demand and follow-up letters.

However, Megawide denies the statement made by FLI that “Megawide is liable for damages because of its delays in construction and abandonment of five (5) Filinvest building projects”. As earlier mentioned, the new turnover schedule were based on time extesnions approved during the implementation of the projects.

Please see continuation of clarification under Other Relevant Information.
Other Relevant Information

Continued...

Megawide denies the statement made by FLI that “Filinvest had to take over these projects to ensure completion, which resulted in substantial liquidated damages and other actual damages for costs of rectification, take-over works and lost income”. Megawide had turned-over the completed projects according to the terms agreed upon. Hence, there was absolutely no necessity to rectify the projects completed by Megawide.

Megawide denies the statement made by FLI that Megawide “now prefer(s) to discuss the issue outside of the proper legal forum”. Megawide is committed to handling this issue using any legal means necessary, which includes pursuing an amicable settlement of the matter.

We trust that the foregoing is sufficiently helpful to you. Please do not hesitate to call us should you have any further questions.

Thank you.
Filed on behalf by:
Name Jennifer Lee
Designation Assistant Corporate Secretary and Corporate Information Officer