MANILA - Listed Benguet Corp. is in talks with creditors to settle outstanding debts, the miner told the bourse on Friday.

"Among the more vital matters taken up in the meeting [last week] was the validation of the [special purpose vehicle] documents to update Benguet Corp.’s list of creditors," the miner said.

In the 1980s, Benguet secured a P4.2-billion loan to fund the development of its Antamok gold project in the town of Itogon in Benguet.

The miner said it paid P4.4 billion, consisting of P3.3 billion in principal and interest of about P1.1 billion, between 1993 to 2000. However, sharp peso devaluation resulted in the balance of P877 million rising to P1.2 billion, it added.

Late last month, Benguet contested notices of default sent by creditors, citing the absence of an updated list and voting by creditors. Creditors had demanded the payment of P316 million in matured loans.

Benguet clarified that it had received only notices of default from individual creditors, not a collective notice from trustee Philippine National Bank (PNB).

"During the meeting, it was agreed that the company will coordinate with PNB as trustee on the validation of the special purpose vehicle documents," Reynaldo P. Mendoza, assistant corporate secretary of Benguet, said in the disclosure.

As of end-2008, the miner’s loans subject to a repayment plan amounted to P2.9 billion, higher than the P2.3 billion in 2007.

The miner cut net losses to P106.734 million in the first semester from P212.098 million during the same period last year following the sale of a mine and a decline in merchandise and service costs.

On Friday, prices of Benguet shares dropped to P9.70 apiece from P9.80 on Thursday.