Subic Bay Freeport — The Subic Bay Metropolitan Authority on Monday announced that it has taken over an aviation services company inside this premier Freeport for failing to comply with the agency's lease agreement.

SBMA chairman and administrator Jonathan D. Tan disclosed that the SBMA repossessed the leased properties of Aviation Hub Asia Inc. on Monday as it served a notice of re-entry into, repossession and takeover of leased premises with demand to pay dated 17 October 2023 that was received on 3 November 2023.

"The notice took effect on Monday, some 30 days from the receipt of the notice," said Tan, adding that the Board of Directors approved Resolution No. 23-10-0296 on 3 October 2023 pre-terminating the lease agreement of the said company.

Tan said that the issuance of the resolution from the Board came after the company failed to settle unpaid lease rentals, comply with development commitments and the non-submission of Performance Bond.

The official stated that the company has an outstanding obligation amounting to P19,122,335.97 and $106.02 in unpaid lease rentals and penalty on performance bond, among others.

"Since the company has continuously failed to comply with its development commitments and non-submission of Performance Bond within the period stated in the Notice of Default with Demand to Pay dated September 30, 2022, the SBMA pre-terminated and cancelled the company's lease agreement and repossessed their properties," Tan said.