Bancommerce roadshow for Urban Bank depositors a hit

The depositors and creditors of shuttered Urban Banking Corp. have generally accepted the proposed rehabilitation plan of Bank of Commerce paving the way for the possible reopening of the bank next month, bank officials told The STAR yesterday.

Bancommerce received a favorable response in its successful five-day roadshow presentation last week. Bank officials said the presentation "was successful and well-attended."

"Some of the depositors of Urban Bank and Urbancorp Investment Inc. who decided not to attend the presentation requested our account executives to just sent the letter of confirmation," the officials said.

They said the favorable response generally came from the depositors and creditors based in the provinces.

The presentation of the rehab plan was conducted in Baguio, Davao, Cebu, Iloilo, and Metro Manila from Nov. 13 to 17, 2000.

The depositors and creditors specifically agreed to the liability servicing plan proposed by Bancommerce wherein they would be paid in three year-period.

Based on the three-year payment scheme, Bancommerce will pay the peso deposits based on 91-day Treasury bill rates less four percent and less tax.

Bancommerce, the rehabilitator of Urban Bank, also agreed to pay for dollar deposits based on the average SIBOR (Singapore Interbank Offered Rate) rate less three percent and less tax.

Under the plan, Bancommerce will also initially pay P500,000 inclusive of the amount paid by the Philippine Deposit Insurance Corp. (PDIC) to all depositors and creditors of Urban Bank.

The rehab plan will enable Bancommerce to pay all the depositors and creditors of Urban Bank 30 percent in the end of the first year, another 30 percent by the end of the second year and the remaining 40 percent at the end of the third year.

Aside from Urban Bank, Bancommerce has also acquired Pan Asia Banking Corp., controlled by real estate magnate Tan Yu. It is currently finalizing merger talks with Traders Royal Bank and expects to end the negotiations this month.

Bancommerce is majority by the family of businessman Antonio "Tony Boy" Conjuangco. The other stockholders of the bank include: College Assurance Plan, Equitable PCI Bank group, Philippine Long Distance Telephone Co. (PLDT) Retirement Plan and Professional Bankers Group.

In a related development, the Social Security System (SSS) has firmed up its commitment to infuse an additional P600 million in Bancommerce should it finalize the merger with Urban Bank.

SSS deputy investment head Edgardo Solilapsi told The STAR that they are still optimistic that the planned merger or Bancommerce and Urban Bank will bear fruit in the future.

"It is important for us (SSS) to assist in putting the bank (Bancommerce) into operation and eventually depositors/creditors/stockholders to recover their money," he said.