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PDIC to proceed with the bidding for the rehabilitation of EIB
Court denies motion for recon of Pacific Rehouse et. al.

The Board of Directors of the Philippine Deposit Insurance Corporation (PDIC) has decided to proceed with the bidding for the rehabilitation of Export and Industry Bank (EIB) after the Makati Regional Trial Court (RTC) Branch No. 146 denied the application for a temporary restraining order (TRO)/injunction to prevent the sale of the assets, branches and commercial bank license of EIB.

Presiding Judge Encarnacion Jaja G. Moya issued the order denying the TRO/injunction due to lack of jurisdiction. In her order, Judge Moya also explained that the 72-hour TRO previously issued was automatically lifted. Subsequently, on October 29, 2012, Judge Moya also denied a motion for reconsideration of her order denying the TRO/injunction.

The PDIC will hold a forum for creditors and uninsured depositors of EIB on November 5, 6 and 7, 2012 at the Penthouse, SSS Building, Ayala Avenue corner V.A. Rufino Street, Makati City. The schedule of the forum is posted at the PDIC website, www.pdic.gov.ph. During the forum, the rehabilitation process and re-bidding procedures in relation to the court order lifting the TRO will be explained.

The bidding for the rehabilitation of EIB, which was scheduled on October 18, 2012, was declared a failure as no bids were submitted.

The 72-hour TRO that was previously issued was based on a complaint filed by Pacific Rehouse Corporation, Forum Holdings Corporation, East Asia Oil Company, Inc., Pacific Concorde Corporation, and Mizpah Holdings, Inc. in connection with the bidding for the rehabilitation of the closed EIB. The TRO was against the PDIC, Bangko Sentral ng Pilipinas and EIB. The plaintiffs alleged that the sale of EIB’s assets is liquidation under the pretext of rehabilitation and, without proper court order, will deprive them the chance of filing a claim against EIB in a liquidation court. Such a claim is based on a final judgment against E-Securities which plaintiffs argue is the alter ego and business conduit of EIB.

In response to the 72-hour TRO and plaintiffs’ application for a TRO/injunction, PDIC filed before the Makati RTC Branch 146 on October 18, 2012 an extremely urgent motion requesting for the lifting and dissolution of the TRO; and denial of the plaintiffs’ application for issuance of preliminary injunction. PDIC General Counsel Romeo M. Mendoza, Jr. said that the motion was filed on the grounds that the Makati RTC has no jurisdiction to issue a TRO and preliminary injunction against PDIC and that the issuance of the TRO against PDIC is patently in violation of the Rules of Court and jurisprudence, given that there is no extreme urgency in the issuance of the TRO and award to the highest bid shall be made only after the requisite regulatory approvals have been obtained.

During the hearing for the TRO/injunction, Peter Salud, President and Chief Executive Officer of plaintiff Pacific Rehouse Corporation, disclosed that Mr. William Gatchalian has the controlling interest of the firm.

For further information, interested parties may call Assistant Vice President Teresa H. Garcia (Records Control and Logistics Department) at telephone numbers (02) 841-4725 or (02) 841-4726, or communicate through e-mail address, rbmg@pdic.gov.ph.

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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.

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