PDIC stopped from selling Unitrust assets

The Makati Regional Trial Court has issued an order stopping the Philippine Deposit Insurance Corp. (PDIC) from selling the assets of Unitrust Development Bank.

The temporary restraining order (TRO) will be in effect for 20 days starting on Aug. 14.

The court also ordered the PDIC to refrain from awarding or accepting "the rehabilitation program of Philippine Bank of Communications (PBCom) without the requisite stockholders’ approval."

Under PDIC rules, the rehab program must be approved by at least two-thirds of the bank’s depositors and stockholders. Meanwhile, the bank must not be placed under liquidation.

Francis Yuseco and a group of Unitrust Development Bank stockholders sought the restraining order to stop the PDIC from bidding out anew Unitrust Bank after PBCom (the winning bidder in an earlier public auction) failed to get the required two-thirds consent of the bank’s stockholders and depositors.

"We will file this afternoon (Aug. 16) for a judicial rehabilitation order with the same court," Yuseco added. A judicial rehabilitation order recognizes the petitioner’s (Yuseco, et. al.) rehabilitation program while stopping other entities including the PDIC from rehabilitating or selling Unitrust Bank.

With the TRO, PDIC will have to postpone its planned rebidding. Likewise, the government will have to abort the liquidation process which it reportedly was about to start.

And should the court issue a judicial rehabilitation order, the Yuseco group could well take control of the bank since the PDIC or other government entities will be prevented from selling or liquidating the bank.

Under the Yuseco group’s rehabilitation program, the court will appoint a receiver, which can also be recommended by the petitioners. Among those nominated are: Flor Orendain, former chief executive of the National Home Mortgage Financing Corp.; Rene Jazmines of Manila Bank, and Mario Gutierrez of Rich Investments.

Aside from Yuseco, the other petitioners are Leopoldo J. Valcarcel, Fred L. Gutierrez, Pedro Montanez, Minamoto Saiken Kaishu, and G. Universal Co. Ltd.

If they are allowed to take control, the Yuseco group is likely to choose from two prospective partners to restart Unitrust Bank. They are the First Federal Banking Corp. of Taiwan and NHI Capital, a RP-US joint business venture.

The new partner acquire a 60-percent equity after placing an escrow account while the remaining 40 percent would be divided among the members of the Yuseco group.

Meanwhile, the controversial Genta Ogami, majority stakeholder of Unitrust reportedly remains under house arrest in Tokyo on charges of several counts of fraud and estafa.

Ogami controls G. Cosmos Japan Co. Ltd., G. Cosmos Phils., Japan G O International Co. Ltd., Minamoto Saiken Kaisha Co. Ltd., Japan G. Universal Co. Lts., and Kanzaki Kyoot Kaihatan Co. Ltd. These companies are now all subject to various levels of investigation of charges such as fraud, estafa, laundering, and international pyramiding.

PDIC president Norberto C. Nazareno was unavailable for comment as of presstime.