PNB wants Uniwide rehabilitation plan amended

The Philippine National Bank, a principal creditor of financially-challenged Uniwide Group of Companies wants the Securities and Exchange Commission (SEC) to modify the approved amended rehabilitation plan of the company to ensure its rights are protected.

The bank said the rehab plan approved last month by the regulator does not assure that creditors will be able to collect what is due them.

PNB said the following schemes were not designed for the bank's rights as mortgagee-creditor: creditors secured with operating and non-operating assets will be paid in cash with a 20-percent discount to appraised values, and dacion en pago or payment in kind which will be affected by means of the creation of a special purpose corporation (SPC), the shares of which will be distributed to the creditors by way of payment for the outstanding obligations.

PNB said its position under the dacion en pago scheme has always been rendered essentially inferior, such as the sharing in the Metromall under the SPC ownership is reduced from 70 percent to 28 percent in view of the participation of the Coastal Mall syndicate compared of other creditors such as Bank of the Philippine Islands, Rizal Commercial Banking Corp. Asian Bank and East West Bank.

In contrast, the collateral position of other participants who hold only leasehold rights on the Coastal Mall has been enhanced.

PNB complained, saying; "PNB is in the business of banking... and the management and business operation of the Metromall, however, is beyond PNB's competence. That is not what the PNB bargained for. Under that scheme, it may not only take longer for PNB to recover its financial exposure... there is even the possibility that the business venture of the Metromall may not be successful and PNB might never recover at all."

PNB cited other provisions in the rehab plan that are adverse to its interests: the condonation of accrued interests and penalties from July 1, 1999 onwards, as of March 31, 2000, unpaid interests and penalties amounted to P318 million out of which P258 million will be condoned; PNB will be made to advance P43.364 million was the estimated pro-rata share of PNB in SPC expenses; and, the joint agreement executed by spouses Jimmy and Aniceta Gow in favor of PNB and other creditors will be cancelled, virtually letting them scot-free.

PNB said that as an alternative to the dacion en pago or payment in kind scheme, the bank and another principal creditor, Allied Bank Corp. (who holds the mortgages on the Uniwide Metromall), be paid the loans due and owing them, and release the said mortgage lien on the Metromall, or the Metromall be sold and the proceeds be applied in payment of those obligations, and the excess be distributed to the other creditors.