The Liquidation Court has directed depositors and creditors of the closed Unitrust Development Bank (Unitrust) to appear before the court to agree to the partial payment of their claims in kind instead of full payment in cash.

Unitrust was ordered closed by the Monetary Board on January 4, 2002, and is now under the liquidation of the Philippine Deposit Insurance Corporation (PDIC). As of the date of closure, the bank was owned by Pedro Montanez, G. Universal Co., Ltd., Leopoldo Valcarcel, Francis Yuseco, Jr., Minamoto Saiken Kaishu Co., Ltd., and others. However, there were reports that Unitrust was owned by Genta Ogami, a Japanese who was linked to a company called G. Cosmos.

Presiding Judge Winlove M. Dumayas of the Liquidation Court (Makati Regional Trial Court Branch 59) has ordered 8,179 depositors and creditors of the failed bank to convene before the Makati City RTC Branch 59 on September 10, 2013 at 8:30 a.m. for the hearing of Special Proceedings No. M-6069 entitled “Petition for Assistance in the Liquidation of Unitrust Development Bank (UDB)”. The Omnibus Order dated August 5, 2013 states that depositors and creditors are directed to appear before the Liquidation Court “to agree to the proposed allocations of their interests in the real properties as payment equivalent to 38% of their respective claims” and “to execute their respective quitclaims and waivers once all their claims have been fully-settled”. The Order further stated that the agreement to the proposed allocation was a necessary prerequisite to the waivers required by the Court. The contents of the quitclaims and waivers will be explained during the September 10 hearing.

The Court also directed the PDIC, Liquidator of Unitrust, to publish notices to the depositors and creditors in order to settle their claims pursuant to the Order of the Court dated December 17, 2012.

As of July 31, 2013, the PDIC had paid P110.15 million in deposit insurance claims involving 6,592 accounts. Total deposits of Unitrust amounted to P235.59 million, of which P116.92 million were uninsured deposits and are subject of depositors’ claims against the assets of Unitrust, alongside other creditors. The maximum deposit insurance coverage at the time of Unitrust’s closure was P100,000. Also, as of December 31, 2012, Unitrust has P381.4 million in total estimated realizable value of assets (ERVA).

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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.