Monday, May 28, 2018
  • share this

Sale of closed Exportbank’s assets put on hold

/ 12:12 AM December 13, 2012

The sale of the assets of Export and Industry Bank (EIB), scheduled to take place this month, has been deferred indefinitely due to concerns raised by the bank’s stockholders.

Philippine Deposit Insurance Corp. (PDIC) said in a statement that stockholders of the closed bank would want to resolve some issues first before agreeing to the sale of the assets.

The regulator wants to secure the stockholders’ approval before auctioning off EIB’s assets.


“EIB stockholders are willing to give their consent but cited some concerns before doing so,” PDIC said in the statement.

The stockholders are bothered by the claims of five companies—Forum Holdings Corp., Pacific Rehouse Corp., East Asia Oil Co. Inc., Pacific Concorde Corp., and Mizpah Holdings Inc.—regarding EIB’s assets.

The five parties claimed that EIB Securities, a subsidiary of the bank, sold their DMCI shares without approval. As a result, they incurred losses.

The five entities now want EIB to pay for their losses. They explained that the sale of the bank’s assets would adversely affect their claims.

The complainants succeeded in securing a court order to halt the sale of the bank’s assets in October. The three-day temporary restraining order (TRO) was issued by the Makati Regional Trial Court.

PDIC said the TRO had not been extended. The regulator also received a boost from the Supreme Court when it ruled that EIB and EIB Securities are two distinct entities and that the former may not be held liable for the obligations of the latter.

Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Banking, banks, Export and Industry Bank, Philippines, sale of assets
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2018 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.