SEC names Urbancorp receiver

The Securities and Exchange Commission (SEC) has appointed Corazon dela Paz as interim receiver for Urbancorp Investments Inc.

As interim receiver, Dela Paz will manage the operations of Urbancorp and ensure that the company's proposed rehabilitation plan is properly implemented.

Dela Paz is the chairman and senior partner of accounting firm Joaquin Cunanan and Co. which is affiliated with international accounting and auditing firm Price Waterhouse. She is also a director of the Makati Business Club.

The SEC has just given Urbancorp a 60-day debt payment reprieve.

The suspension of debt payments will keep Urbancorp's creditors at bay which is needed for the investment house to get its finances and remaining assets in order.

Urbancorp which is 40 percent owned by Urban Bank claimed in its petition it owns and possesses sufficient assets to cover all its obligations and liabilities estimated at P5.8 billion, of which P557.110 million consists of the liabilities as an investment house, and P5.274 billion comprise the liabilities of its trust operations.

On the other hand, Urbancorp said its assets total P6.338 billion.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) has given Urban Bank until June 5 to submit a rehabilitation plan for the now closed bank, the first commercial bank put under receivership this year, Urban Bank president Teodoro Borlongan told The STAR yesterday.

This is three weeks later than the May 12 deadline reportedly imposed by the Philippine Deposit Insurance Corp. to Urban Bank to submit a similar plan.

"We are given up to June 5 to submit a viable rehabilitation plan," he said. Urban Bank officials conducted a meeting with the BSP Monday night.

Aside from the deadline, he said the BSP and the bank have agreed to a truce, that is, neither party would be issuing negative press statement against each other. -- With Jun Ebias