Bid to rehab Exportbank fails, says PDIC

Government efforts to rehabilitate the padlocked Export and Industry Bank failed on Thursday as there we no bidders for task, the Philippine Deposit Insurance Corporation (PDIC) announced.   “PDIC… declared today’s auction for Tranche 1 of the rehabilitation of the bank a failed bidding after no bids were received,” said PDIC, the state-run deposits insurer that took over the bank last April, said in an e-mailed statement.   The bank, also called EIB or Exportbank, was shuttered by Bangko Sentral ng Pilipinas after it failed to meet the demands of big depositors, and was placed under PDIC receivership.   Tranche 1 of EIB’s rehabilitation includes the sale of assets and liabilities. It has about P25 billion worth of assets and over 50 branches and 47 automated teller machines nationwide.   Bidding for Tranche 1 also entails paying for the uninsured deposits and Exportbank’s creditors. The bank’s insured deposits amount to P3.4 billion, and its uninsured deposits are P10.4 billion.   PDIC also revealed that it received a 72-hour temporary restraining order from a Makati City Regional Trial Court.   Forum Holdings Corporation, East Asia Oil Company Inc., Pacific Rehouse Corporation, Pacific Concorde Corporation and Mizpah Holdings Inc. were the petitioners of the TRO.   “Plaintiffs (Forum Holdings Corp. et. al) have no clear and unmistakable right over EIB’s assets, branches and commercial bank license to be entitled to injunctive relief and that there was no extreme urgency in the ex parte issuance of the TRO,” PDIC argued.   The state-run insurer said it ask the court lift the TRO.   “RTC had no jurisdiction to issue the TRO and preliminary injunction and that the court was patently in violation of the Rules of Court and jurisprudence,” it added.   PDIC noted it will pursue the bank’s rehabilitation “for the benefit of depositors and ordinary creditors.”   To completely rehabilitate Exportbank entails getting the consent of its creditors, major stockholders, and uninsured depositors, plus the approval of PDIC and Bangko Sentral.   The second tranche of EIB’s rehabilitation covers its commercial banking license.   Earlier, six banks including BDO Unibank expressed their interest in bidding for EIB. — VS, GMA News