Rehabilitation of EIB hits major roadblock

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The rehabilitation of Export and Industry Bank has hit a snag as less than half of the depositors and creditors have consented to the planned sale of the troubled bank, according to the Philippine Deposit Insurance Corp.

The bank’s stockholders recently reiterated their requirement for PDIC to get the consent of all depositors and creditors before they give their own blessing to the sale.

In a statement, PDIC executive vice president Cristina Orbeta said that according to the latest records, only 44 percent of the bank’s depositors and creditors have given their consent to the sale.

This is despite the fact that the deadline for submission of the consent forms had been extended for two months from the original deadline of Sept. 8.

Even with the deadline extension, she said, the majority of the depositors and creditors have not given their consent.

Consent to the rehabilitation of EIB would mean a waiver of secrecy of deposits, among other requirements.

“The major stockholders raised the need for consent from 100 percent of the creditors and depositors with uninsured deposits before they can undertake to perform the acts required to approve and implement the rehabilitation of EIB,” PDIC said.

According to PDIC, it has exerted efforts to get the consent of all depositors and creditors through notices.

PDIC likewise said its officials had conducted meetings with uninsured depositors of EIB to explain the benefits of rehabilitating the bank.

Orbeta earlier said rehabilitating the bank would improve the chances for the uninsured depositors to get their money.

Under the law, only deposit accounts worth a maximum of P500,000 are covered by insurance.

Uninsured depositors may or may not be paid depending on the amount to be raised by PDIC from the sale of the assets of the failed bank.

PDIC had scheduled a bidding for EIB on Oct. 18, but the bidding failed as no potential investor appeared.

The absence of bidders was blamed on the three-day temporary restraining order issued by the Makati Regional Trial Court on Oct. 17.

The TRO was requested by parties that said they had claims against the bank.

These were Forum Holdings Corp., Pacific Rehouse Corp., East Asia Oil Co. Inc., Pacific Concorde Corp. and Mizpah Holdings Inc.

The five parties alleged that EIB Securities, a subsidiary of the bank, had sold DMCI shares without their consent, and that the sale led to their losses.

They want EIB to pay for their losses, and raised concern that the sale of the bank’s assets would adversely affect their claims.

Although the TRO had lapsed and was not extended by the court, the stockholders of EIB had said they also wanted the issue to be fully addressed first before they give their consent to the sale of the bank.

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  • http://pulse.yahoo.com/_FASESU6FPUXJCZMOVMMFEEMLGU Carmencita Lopez

    samahin nyo na ang prime bank, orient bank, monte de piedad at iba pang mga bank na nagsara.

  • http://pulse.yahoo.com/_FASESU6FPUXJCZMOVMMFEEMLGU Carmencita Lopez

    gaya rin yan ng legacy at aman.

  • http://pulse.yahoo.com/_FASESU6FPUXJCZMOVMMFEEMLGU Carmencita Lopez

    ang hirap kasi sa mga tao, mga swapang. habol ng habol ng malaking interest, kaya ayan, pati ang capital nawala.

    • carl son

      It’s not about interest kasi yong export bank ay hindi nagbibigay ng malaking interest gaya ng legacy or aman.  nilagay lang nila yong pera sa bangko for safekeeping kasi mahirap magtago ng malaking pera sa bahay mo.  at ang pera na ito ay hard earned money.  kaya lesson learned dito ay huwag na kayo mag deposito sa bangko.  buti pa pagawa kayo ng sarili ninyo vault.  doon nyo ilagay lahat ng pera nyo. inutil kasi gobyerno natin hindi makabigay ng proteksyon sa mga depositors. alam na pala ng BSP at PDIC na tagilid na ang bangko, bakit hindi tinulungan or gobyerno mismo mag takeover.  Hinintay pa na magsara, kawawa tuloy mga inosente depositors.

  • carl son

    PDIC should qualify their data.  Was it based on total amount of deposits? or total number of depositors?  This is very important because I believe the stated minority is in fact the majority in terms of numbers.  The majority is composed of few very rich individuals and corporations.  It’s pity for the small depositors.  The minority wants immediate rehabilitation because they are the ones most in need are badly affected by EIB closure.  The majority rich can doesn’t need this much because they have lots of extra money.  Why is the majority making the situation difficult?  Why are they not cooperating in the rehabilitation?  I have a wild guess….but I will reveal later.  How about you, do you have a guess why?  PDIC must do something about this to help the small time depositors because they are the majority in numbers who are badly in need to recover back their money…even a portion only if not the full one.  Think for a best formula for those who give their consent and for those who did not in order to avoid hostaging of the process. 

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