DAVAO THERMO BIOTECH CORP.

The Chairman & Members of the Committee, Good Afternoon.

May I present our proposal for the account of Davao Thermo Biotech Corp.(DTBC) for the
following:
 First restructuring of outstanding principal of Term Loans 1,2 and 3 in the amount of
P99.01M for a term of ten (10) years
 Capitalization of booked and unbooked interests and other charges up to
implementation date with repayment of ten (10) years
 100% conditional condonation of penalties up to implementation date
 To allow unregistered REM in additional collateral covered by Carp-2017000037
 Waiver of 5% upfront payment for restructured accounts

The company’s business is a pioneering project on waste management and production of

organic fertilizer. It is the vision of the company to use the potential of YMO’s technology to
minimize the country’s problem on wastes, and help the government achieve
implementation of waste management regulations.

The Bank has approved the Term Loans 1 to 3 of the Borrower in the total amount of
P125.00 Million for the establishment of processing plant for organic fertilizer on Oct 6,
2015. The construction of the organic fertilizer plant and other structures were completed
on November 2016 and was officially inaugurated last 26 April 2017.

Although construction was completed, there were delays in acquiring the YMO compost
activator due to delayed import from the Fertilizer Pesticide Authority (FPA). The cash flow
of the business at present is from the waste collection and management services. Recently,
DTBC was given an endorsement contained in the Resolution of the Davao City Ecological
Solid Waste Management Board, which validates the efficacy of the technology, and
recommends DTBC to private establishments. With this, DTBC will have wider business
opportunities on the solid waste management services industry.

We favorably recommend the approval of the proposed transaction based on the following
justifications:

 The 10-year restructuring is essential to help the Borrower improve its financial capacity.
It will allow borrower to generate enough cash flow for the loan amortization,
considering its current revenue streams from waste management
 Once approved, the Bank’s past due level will reduce by P99.013 Million upon
implementation of the restructuring proposal.
 The project belongs to the mandated sector of the Bank as a large enterprise engaged in
agri-business. Moreover, the project helps in achieving government implementation of
waste management regulations.

For your approval, please.Thank you.