Road to Exportbank rehab 'getting more difficult'
MANILA, Philippines - The rehabilitation efforts for the now-closed Export and Industry Bank (Exportbank) are facing serious hurdles, according to the state deposit insurer, citing difficulty in obtaining the consent of some depositors and creditors.
In a statement on Thursday, January 10, the Philippine Deposit Insurance Corp. (PDIC) said it has yet to secure the consent of the remaining 52% of the bank's creditors and unsecured depositors so it could proceed with the proposed rehabilitation program.
"The road to the rehabilitation of EIB (Exportbank) is getting more and more difficult," PDIC executive vice president Cristina Q. Orbeta said, stressing the need to set a meeting with the bank's stockholders and strategic 3rd party investors to discuss options on how to move the rehabilitation plans forward.
"The results of the meeting with stockholders and the interested investors will be the basis for the decision of the PDIC Board on the matter,” Orbeta said.
PDIC said stockholders and the interested investors have required that 100% of those with uninsured deposits must give their consent. However, after numerous meetings with the depositors in various areas nationwide, as well as extensions of the deadline, only 48% has submitted their consent forms.
The legal issues arising from the claims on the bank's assets by parties other than the bank's depositors and creditors were additional concerns.
PDIC cited the group of companies composed of Forum Holdings Corp., East Asia Oil Co., Inc., Pacific Concorde Corp., Mizpah Holdings, Inc., and Pacific Rehouse Corp. that have filed with the Court of Appeals a petition with Prayer for Issuance of Temporary Restraining Order (TRO) and/or Preliminary Injunction to prevent the bank's rehabilitation.
PDIC said it received the group's petition on November 22, 2012, a month after the case the said group filed with the Makati Regional Trial Court was denied on October 19, 2012.
The bank's records show it has no liability to these companies when it closed in April 2012, Orbeta said.
Exportbank was placed by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) under PDIC's receivership on April 26 after the bank voluntarily surrendered its operations because it could no longer meet its obligations. Exportbank declared a bank holiday on April 27.
Days later, Sy-led Banco De Oro, which had been in talks to acquire Exportbank before the latter collapsed, filed a proposal with the PDIC to acquire, and most importantly, rehabilitate the bank. BDO said it was "prepared to move in immediately."
PDIC had said it was reviewing the proposal, but noted there were conditions set by BDO that were beyond PDIC's authority.
The deal with the Sy-led bank caved in because BDO didn't want to get entangled in legal issues involving Exportbank. The troubled bank is facing a suit from a "certain group" filed early 2012, a Bangko Sentral ng Pilipinas official had said.
Exportbank was a commercial bank, with over 50 branches and 40 automated teller machines catering to 50,000 depositors nationwide when it closed down.- Rappler.com