The Philippine Deposit Insurance Corporation (PDIC), the Liquidator of the closed Unitrust Development Bank (Unitrust), announced that it will continue to release cash payments to the depositors and creditors of Unitrust until October 7, 2013. The cash payments represent the partial settlement for the claims of the Unitrust depositors and creditors against the assets of the bank.

The PDIC started cash payments on Monday, September 9, 2013. The payments should be claimed personally by the depositors and creditors or their duly authorized representative at the Unitrust Development Bank Exchange Corner located at the Ground Floor, Exchange Corner Complex Condominium, Exchange Corner Building, V.A. Rufino St. corner Esteban and Bolanos Sts., Legaspi Village, Makati City, on their designated schedule. The schedule of release of payment and requirements are posted in the PDIC website, www.pdic.gov.ph.

Meanwhile, the Liquidation Court has set another hearing on Friday, September 13, 2013 at 8:30AM at the Regional Trial Court of Makati City, Branch 59, to discuss the content of the Release, Waiver and Quitclaim, With Undertaking to be accomplished by the depositors and creditors of Unitrust. The Liquidation Court had earlier directed the Unitrust depositors and creditors “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.”

In the hearing on September 10, 2013, the PDIC said that given that Unitrust has sufficient cash, claims of all depositors and creditors can be settled fully in cash. The bank also has surplus assets of P156 million after settlement of all claims of depositors and creditors.

Mr. Francis Yuseco, Jr., Unitrust stockholder, is opposing the full release of cash payment to the depositors and creditors if they do not sign a waiver on their claims over the closed banks’ surplus dividends.

A surplus dividend is compensation in the form of damages suffered due to the closure of the bank. This is computed at the rate of 12% per annum from the date of closure, in accordance with the Civil Code. Surplus dividends are declared on excess assets after payment of all claims of depositors and creditors.

PDIC said that waiver on the part of the depositors and creditors over the surplus dividends is voluntary. The PDIC stressed that providing depositors and creditors accurate information on the financial condition of the closed Unitrust is critical in making informed decisions; and serves their best interests in order to maximize the recovery of their claims in the closed bank. This is because waiving one’s right to surplus dividends is a decision that the depositors and creditors have to make on their own.

For more information, depositors and creditors may visit the PDIC website at www.pdic.gov.ph or call Mr. Ronald C. Angeles at telephone no. 841-4780 and Mr. Marcelo Torres at telephone numbers 841-4784 and 841-4983.

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