Philippine Realty and Holdings Corp. said it was nearing an agreement with its creditor for a possible debt-for-asset swap that will cover the property firm's P169 million in obligations.

PhilRealty president Amador Bacani said the Bank of the Philippine Islands might own a certain number of units at Tektite Towers in Pasig City in exchange for PhilRealty's debts.

The loan involved was obtained from Prudential Bank but it was transferred to BPI when it acquired the former.

The Tektite Towers, home to one of the Philippine Stock Exchange's trading floors, was developed by PhilRealty.

The settlement of the company's debts is critical to its financial recovery.

Also, the company must complete its condominium project in New Manila, Quezon City--the Andrea North Skyline Tower--before it can exit from rehabilitation.

Skyline Tower is targeted for completion next year. It is PhilRealty's flagship residential project in Quezon City.

Started in 1996, the project was suspended in 2000 as an aftermath of the Asian financial crisis.

In December 2002, the company filed a petition for corporate rehabilitation with the Quezon City Regional Trial Court to stop creditors from foreclosing on its properties.

The court approved the petition in 2003 and appointed a rehabilitation receiver.