PDIC to sell acquired assets on Dec. 20

MANILA, Philippines—The Philippine Deposit Insurance Corp. is set to sell more acquired properties to boost resources and partly settle the liabilities of banks that failed and were placed under its receivership.

In a statement, PDIC said it would sell 272 real properties through a bidding to be held on Dec. 20 at its headquarters in Makati City.

The properties to be sold will include 267 residential lots, four condominium units and one parking slot located at various parts of the country, although most are in Metro Manila.

Proceeds from the bidding will be used to pay creditors and uninsured depositors of banks that the Bangko Sentral ng Pilipinas ordered closed due to insolvency and other reasons. The minimum amount to be raised from the sale was placed at P80.3 million.

A bid for any of the properties for sale must be accompanied by a deposit amounting to 10 percent of the bid, PDIC said.

It added that parties intending to buy any of the properties for sale should conduct a due-diligence audit, particularly through physical inspection of the assets, verify the availability of land titles and other necessary documents, and determine any unpaid taxes, fees and other liabilities, if any.

Winning bidders will be required to pay the balance of the bid prices on or before Jan. 4, 2013.

The bidding next week will follow that held last month and in August. The bidding last November involved 178 real properties valued at P81.5 million while the bidding in August involved 130 real properties valued at P244 million.

Over the past two years, the BSP has ordered the closure of nearly 60 financial institutions, mostly rural banks, due to capitalization and management problems.

Under the law, only deposits up to P500,000 are insured. Amounts in excess of P500,000 may or may not be recovered and creditors of closed banks may or may not be paid depending on the ability of PDIC to generate cash from the liquidation of assets of the closed banks.