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PDIC to bid the rehabilitation of Export & Industry Bank on Oct. 18
Depositors Forums set

The Philippine Deposit Insurance Corporation (PDIC) is set to bid tomorrow, October 18, 2012, the first tranche (Tranche 1) for the rehabilitation of the closed Export & Industry Bank (EIB). Bids for Tranche 1 will be opened at 1:00 p.m. at the Penthouse, SSS Bldg., 6782 Ayala Avenue corner V. A. Rufino St., Makati City. The bidding is open to the public on a first come, first serve basis.

The bidding for the rehabilitation of EIB will involve two tranches. Tranche 1 will be for the purchase of assets and assumption of liabilities of EIB while Tranche 2 will be for the disposition of the commercial bank license of EIB. Details on the bidding for Tranche 2 will be announced at a later date, according to PDIC.

Bids for Tranche 1 will reflect the recovery to the uninsured depositors and other ordinary creditors of EIB. The winning bid for Tranche 1 will be that which will give the highest amount of recovery for depositors and ordinary creditors. The bid will be indicated in Philippine peso and will represent the amount the qualified bidder will pay for the uninsured deposits and other ordinary credits of EIB. It will also indicate the repayment terms.

According to the bidding procedures, 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 submission of bid.

Under the bidding procedures, the PDIC Board will determine the reserve price, or the amount that the PDIC has determined as the minimum amount of recovery that depositors and ordinary creditors should receive considering the net value of the free or unencumbered assets and the net benefits to the acquirer of the rehabilitation.

Meanwhile, the PDIC also announced that another round of Forum for the creditors and uninsured depositors of EIB will be conducted on October 24; and November 5, 6 and 7, 2012 at the EIB Sky Lounge, 34th Floor, Exportbank Plaza, Chino Roces Avenue corner Sen. Gil Puyat Avenue. EIB creditors and uninsured depositors who were unable to attend the series for forums previously conducted nationwide in July to August 2012 are invited to attend. Depositors may come either in the morning session to start at 10:00 a.m. or in the afternoon session scheduled at 3:00 p.m. PDIC will discuss updates on the bidding for the rehabilitation of EIB as well as explain the consent required from the depositors and creditors.

The PDIC has earlier said that a critical requirement to see through and implement the rehabilitation of EIB is the consent of stockholders, creditors and uninsured depositors to the rehabilitation. All these consents must be submitted to PDIC by November 9, 2012.

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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.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.

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