^

Business

Exportbank bidding fails

The Philippine Star
MANILA, Philippines - Auction for the shuttered Export and Industry Bank failed Thursday after pre-qualified investors, informed of a court order halting the process, chose not to submit bids. “We did not receive any bid envelope for this bidding. We, therefore, declare a failed bidding,” Nancy Sevilla-Samson, PDIC vice-president for receivership, said at the public auction at the PDIC office in Makati City. The state deposit insurer was supposed to bid out Exportbank’s assets and liabilities worth P36 billion as part of the bank’s rehabilitation process. Exportbank was padlocked last April 27 after it failed to service depositor claims. The bidding failure came after the Makati Regional Trial Court Branch 129 issued a 72-hour temporary restraining order (TRO) against PDIC and the Bangko Sentral ng Pilipinas (BSP), stopping both entities from proceeding with the auction. “Upon the filing of the complaint, a 72-hour TRO immediately be issued restraining defendants BSP, PDIC, Exportbank and/or their officers, agents, representatives, assigns and successors-in-interest from selling the assets, branches and commercial bank license of Export and Industry Bank on 18 October 2012,” Judge Benjamin Pozon said in his order. The hold order, which will expire Friday afternoon, was granted to plaintiffs Forum Holdings Corp., East Asia Oil Company Inc., Pacific Rehouse Corp., Pacific Concorde Corp. and Mizpah Holdings Inc. They argued, among others, that PDIC is not rehabilitating Exportbank, but actually liquidating it. “PDIC is mandated to file a petition for liquidation before the proper Regional Trial Court and it is the latter that approves the transfers and dispositions of properties of the liquidated bank, and decides all issues relating to the claims of creditors,” the order said. BSP and PDIC said they would seek nullification of the order. “We pushed through with the bidding (Thursday) because we believe the court has no jurisdiction to us. We believe we have a strong argument against this,” PDIC executive vice president Cristina Orbeta told reporters. BSP deputy governor Juan de Zuñiga said in a text message: “We have to submit our answer. We are still preparing it and will file within the allowable period.” Respondents have until Nov. 1 to submit their comments. Orbeta said banks which pre-qualified in the bidding were “informed” of the TRO. She declined to provide details on the banks which expressed interest on the Exportbank’s assets and liabilities. “We are going to report to our PDIC Board to see what options we can take,” she explained. “Upon the bidding TRO expiration, we can continue with the bidding but of course we have first to get the comment of the third party investors on this,” she said, adding that a “negotiated sale” is also on the table. Since the sale of assets and liabilities failed, Orbeta said PDIC cannot proceed to open the bidding pre-qualification for Exportbank’s commercial bank license next month. Only Sy-led BDO Unibank Inc. has so far been firm on its interest to acquire Exportbank’s assets and liabilities. Rizal Commercial Banking Corp., which initially announced it will participate, backed out. BDO representatives could not be reached for comment.

vuukle comment

BANGKO SENTRAL

BIDDING

CRISTINA ORBETA

EAST ASIA OIL COMPANY INC

EXPORT AND INDUSTRY BANK

EXPORTBANK

FORUM HOLDINGS CORP

JUDGE BENJAMIN POZON

MAKATI CITY

PDIC

  • Latest
  • Trending
Latest
Latest
abtest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with