MANILA, Philippines—Philippine Deposit Insurance Corp. will again try to sell the assets and liabilities of Export and Industry Bank this year after the bidding on October 18 failed.
In a statement, PDIC said its board had decided to pursue the planned sale of the bank’s assets and liabilities of EIB as soon as possible, especially since an application for a temporary restraining order (TRO) on the sale had been denied by the court.
The TRO was sought by parties that have claims against E-Securities, a subsidiary of EIB. The complainants said the sale of EIB will deprive them of the chance to file claims against the bank.
E-Securities was said to have sold without authority some 32.18 million DMCI shares worth P1.47 billion.
PDIC, however, said the Makati Regional Trial Court, through presiding Judge Encarnacion Jaja Moya, had denied the request for a TRO.
This petition for TRO was filed on top of and following the 72-hour TRO that the same court issued and was received by PDIC on October 18, the date of the EIB bidding.
PDIC believes the three-day TRO was the reason it did not receive any offer from potential buyers of EIB’s assets and liabilities during the bidding.
Days before October 18, PDIC said it was expecting commercial banks to participate in the bidding, believing that the offer was attractive.
EIB has 50 branches. Also, regulators will allow the winning bidder to put up 30 additional branches in supposedly restricted cities in Metro Manila—Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon and San Juan.
The winning bidder, however, will have to assume some, if not all, of the EIB’s liabilities. According to PDIC, the bank has P24 billion in obligations, which include uninsured deposits and debts to creditors.
The bank’s assets, which include the 50 branches, are valued at P12 billion.
The bidders will compete based on how much they are willing to pay for EIB’s assets and how much of the liabilities they are willing to assume, PDIC earlier explained.
PDIC said a forum on the planned sale of EIB’s assets and liabilities would be held on November 5-7 at its Makati office.
EIB was ordered closed in April by the Monetary Board of the Bangko Sentral ng Pilipinas due to insolvency.