The Philippine Deposit Insurance Corporation, as the Receiver of the closed Export and Industry Bank, announces that :
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In view of the closure of EIB as of 26 April 2012, the Philippine Deposit Insurance Corporation (PDIC), in its capacity as statutory receiver, having received manifestations of interest to rehabilitate EIB, has issued the Terms and Conditions of Bid and Bidding Procedures for the Rehabilitation of the closed EIB ("Bidding Procedures") on 3 October 2012.
EIB’s proposed rehabilitation will involve two tranches: (i) Tranche 1, for the purchase of assets and assumption of liabilities of EIB, and (ii) Tranche 2, for the sale of the commercial bank license of EIB. Both tranches are subject to approval of the Monetary Board. The Bidding Procedures issued by PDIC cover Tranche 1. The bidding procedures for Tranche 2 will be issued upon successful completion of Tranche 1.
The bid will be indicated in Philippine peso and will represent the amount the qualified bidder will pay to EIB's depositors (with claims in excess of the insured deposit), and other ordinary creditors of EIB. The bid will also indicate the proposed repayment terms.
The winning bid for Tranche 1 will be based on the bid which will offer the highest amount of recovery for the depositors (with claims in excess of the insured deposit) and ordinary creditors of EIB. For purposes of determining the highest bid, the bids will be expressed in present value terms using a discount rate of 5%. The bid will be valid for a period of 60 days from date of submission of the bid.
Pursuant to the Bidding Procedures, the PDIC Board will determine the reserve price, or the amount that PDIC has identified as the minimum amount of recovery that depositors (with claims in excess of the insured deposit) and ordinary creditors should receive considering the net value of the free or unencumbered assets and the net benefits to the acquirer of the proposed rehabilitation.
The winning bid for Tranche 1 will be applied in proportion to the bona fide claims of the existing depositors (with claims in excess of the insured deposit) and ordinary creditors of EIB.
The success of the bidding and the rehabilitation of EIB is premised on the submission of qualified and compliant bids, approval by relevant regulatory agencies, and submission of all required consents from the depositors, creditors and stockholders of EIB for the implementation of Tranches 1 and 2.
This notice is being sent in compliance with law, including the Bulk Sales Law.
For more details on the bidding for Tranche 1, as well as the proposed rehabilitation of EIB, please refer to Bidding Procedures posted at the PDIC website www.pdic.gov.ph or contact Atty. Nancy L. Sevilla-Samson, PDIC Vice-President for Receivership and Bank Management Group at telephone numbers +632 841-4630 to 31, or e-mail at pad@pdic.gov.ph.