Sale of closed Exportbank’s assets put on hold

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.