Norberto Nazareno, PDIC president, said the money to be turned over to the entity to be chosen on or before April 26 will eventually be used to partially settle claims against the bank.
The PDIC has set today as the deadline for the submission of rehabilitation proposals for Urban Bank.
Nazareno said PDIC might consider providing financial assistance to a group of investors that are planning to create a consortium that will rehabilitate the bank and its investment arm, Urbancorp Investment Inc.
Earlier, a small group of depositors with trapped deposits of about P3.5 billion asked PDIC to approve their proposal to undertake the rehabilitation of the bank.
These depositors grouped themselves into the National Association of Urban Bank Inc. and Urbancorp Investment Inc. Depositors and Creditors or NAUD. They are separate from a consortium being formed by the bank’s three biggest creditors: San Miguel Corp., Manila Electric Co., and Petron Corp. with combined trapped deposits of P2.7 billion.
There are four groups confirmed to be eyeing a takeover of Urban Bank.
These are the Rizal Commercial Banking Corp., International Exchange Bank, Robinson’s Savings Bank and US-based venture firm Newbridge Capital Inc.
Nazareno said the PDIC is determined to find a new buyer for Urban Bank by April 26. Otherwise, PDIC will be forced to liquidate the bank.
PDIC decided to rebid the rehabilitation of Urban Bank after the Bank of Commerce dropped its merger plans with the bank. The Bank of Commerce said it could not possibly push through with the merger plan with so many legal problems still hounding the bank‘s top brass. – Rocel Felix