NEWS |
Tweet |
Exportbank stockholders raise concerns on bank’s rehab |
The Philippine Deposit Insurance Corporation (PDIC) said that the stockholders of the closed Export and Industry Bank (EIB) remain supportive of the bank’s rehabilitation process. The stockholders’ consent to the rehabilitation of EIB is one of the requirements for the rehabilitation to proceed. EIB stockholders are willing to give their consent but cited some concerns before doing so. They expressed concern over the claim on the bank’s assets by parties other than the depositors and creditors of the bank as of the date of its closure on April 27, 2012. The group that has a contingent claim on the assets of EIB consists of Forum Holdings Corporation, Pacific Rehouse Corporation, East Asia Oil Company, Inc., Pacific Concorde Corporation and Mizpah Holdings, Inc. They filed with the Makati Regional Trial Court a case for the Declaration of Liability with Prayer for Issuance of Temporary Restraining Order (TRO) and/or Preliminary Injunction to prevent the rehabilitation of EIB through purchase of assets and assumption of liabilities. The case emanated from the reported losses Forum Holdings et. al. incurred when EIB Securities, an affiliate of EIB, allegedly sold DMCI shares without their consent. The Makati RTC issued a 72-hour TRO a day before the October 18, 2012 bidding for EIB’s rehabilitation. The bidding was declared a failure after no bids were received. The RTC eventually denied their prayer for TRO and injunction on the ground of lack of jurisdiction. Forum Holdings et. al. filed a motion for reconsideration which was likewise denied. Hence, they have elevated the matter to the Court of Appeals (CA) where they now have a pending request for TRO/preliminary injunction against the bidding. In an earlier case filed by the same group, the CA ruled EIB and EIB Securities are two distinct entities. The CA ruling was affirmed by the Supreme Court. Another concern raised by the stockholders is the need for consent from 100% of the depositors with uninsured deposits and creditors of EIB as of the date of the bank’s closure. PDIC earlier announced that the bidding of the bank’s assets will be completed within the year. It said that the recent development may delay the bidding process. The PDIC assured that it is closely monitoring and pursuing the defense of the legal cases as well as the other conditions of the stockholders in order to meet the requirements for the rehabilitation of EIB to push through. Given these recent developments, PDIC is assessing what the remaining viable options are. PDIC has earlier determined that EIB may be rehabilitated following expressions of interest from strategic third party investors to rehabilitate the bank. It further said that it is exerting all efforts to pursue a re-bidding of EIB’s rehabilitation in order to enhance recovery for the uninsured depositors and creditors of the closed bank. * * * * * The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing permanent and continuing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account. PDIC news/press releases and other information are available at the website, www.pdic.gov.ph. RELATED ARTICLES:
|
back |