Yuseco group mulls judicial rehab for United Overseas Bank

A group claiming to own and control the beleaguered Unitrust Development Bank (Unitrust) is threatening to seek judicial rehabilitation after the Philippine Deposit Insurance Corp. (PDIC) rejected its rehabilitation proposal.

A group led by Francis R. Yuseco, Leopoldo J. Valcarcel and lawyer Fred L. Gutierrez said they would seek judicial rehabilitation from the civil courts if the PDIC, receiver of the troubled commercial bank, does not recognize their proposal. Gutierrez claims to represent the holdings of G. Cosmos Philippines.

"And if the PDIC decides to liquidate the bank, we will apply for a temporary restraining order (TRO) from the courts," Yuseco said.

The group claims to have entered into an agreement with First Federal Banking Corp. of Taiwan in starting a joint venture should they win the bid to rehabilitate the bank. First Federal would buy 60-percent equity while another 20-percent would be acquired by a group of Filipino investors. Yuseco said he would account for the remaining 20-percent equity.

Complicating the issue is the reported withdrawal of the winning bid for the bank’s rehabilitation and claims by a group in Japan that the group of Yuseco does not have any control of the bank.

In a press briefing, Yuseco said they submitted a proposal along with the Philippine Bank of Commerce (PBCom) and an unnamed thrift bank. However, the PDIC rejected their bid due to lack of documentary requirements as well as that of the thrift bank.