LBC Express Holdings Corp. disclosed in a regulatory filing that its board has approved the company to serve as continuing surety for the P1.11-billion obligations of its subsidiary, LBC Express, Inc., under credit facilities extended by BDO Unibank, Inc., as reported by BusinessWorld.
The credit facilities from BDO Unibank are intended to support the working capital and other financial requirements of LBC Express, Inc., which operates one of the largest courier and logistics networks in the Philippines. The continuing surety arrangement ensures that the parent company guarantees repayment in case the subsidiary defaults.
LBC Express Holdings, listed on the Philippine Stock Exchange, holds a majority stake in LBC Express, Inc. The transaction reflects the ongoing financial support between the parent and its subsidiary amid the logistics firm's operational expansion and capital management strategies.