BIZ BUZZ: Construction firm suicide play?
Real estate developers, big and small, are still talking about the very public fight between Megaworld Corp. and construction firm DATEM Inc. which, from all indications, looks like it will become a lengthy—and costly—legal battle.
And many of these large real estate firms are still trying to wrap their heads around the strategy employed by the construction company of going after Megaworld’s bank accounts and assets through a short-lived court-issued writ of attachment.
One property firm, in particular, is now warier about dealing with construction firms in general, but also prospectively DATEM, in particular.
“Why did they do that to a large client that has much more resources than them?” mused the ranking property official.
“That’s tantamount to a suicide mission.”
Another real estate man said a case like that between Megaworld and DATEM can drag for years and go all the way up to Supreme Court.
“If collection of much needed cash was their objective then this strategy of theirs to bring it to court will only delay it further,” he said.
There is also worry among property developers that it might be difficult to deal with a party that immediately escalates a dispute with an asset freeze order.
But here’s the other problem for DATEM: With current and prospective private clients now walking on eggshells around it, it may even find it difficult to get government projects, almost all of which require contractors to be free of pending cases.
So what does the future look like for DATEM, armed with an estimated P2 billion in cash reserves but facing a legal storm that could cost a lot more than that? Abangan! —Daxim L. Lucas
Improved crypto compliance
Amid the recent order for Binance to cease operations in the Philippines, four cryptocurrency exchanges across Southeast Asia—including homegrown Coins.ph—have established a group promoting regulatory compliance.
Apart from Coins.ph, the Digital Asset Exchange Alliance is comprised of Singapore’s Coinhako, Indonesia’s Indodax and Thailand’s Bitkub.
“Coins.ph is excited to work with our regional counterparts in advancing the responsible and secure use of cryptocurrencies, and promoting the development of user-friendly and compliant products for users,” said Wei Zhou, CEO of the local crypto exchange.
These companies intend to collaborate by sharing protocols and best practices to improve services. The alliance is also keen on promoting financial literacy and consumer protection.
Binance operations will wind up in the country within three months—as per the order of the Securities and Exchange Commission—for operating without the requisite licenses. —Tyrone Jasper C. Piad