PDIC to rebid shuttered Export and Industry Bank

The assests and liabilities of shuttered Export and Industry Bank will again be offered to investors in a bid to rehabilitate the ailing bank, state-run Philippine Deposit Insurance Corp. announced on Friday.

 

"The bidding will be limited to strategic third party investors (STPIs) which qualified for the bidding conducted by the PDIC last Oct. 18, 2012," the bank deposits insurer noted in a statement.

 

Bids from STPIs represent the amount the qualified bidders will pay for the uninsured deposits and other ordinary credits of EIB. 

 

"STPIs who intend to participate in the re-bidding are required to submit a rehabilitation plan that complies with the requirements for capital strengthening, liquidity, sustainability and viability; and governance," according to PDIC. 

 

Repayment terms proposed by the STPI must be indicated in the bid.

 

The PDIC board will set the reserve price for the bidding. The value of the bid will be computed at a 5 percent discount in determining the highest bid.

 

Fifty-six percent of uninsured depositors and creditors, which make up 67 percent of the ordinary credits—gave the consent to rehabilitate the shuttered bank, PDIC noted.

 

On April 27, 2012, Bangko Sentral ng Pilipinas declared the bank as insolvent and closed it and placed it under the receivership of PDIC. At that time, the bank's liabilities were estimated between P700 million and P800 million.

 

PDIC conducted a series of meetings with depositors and creditors nationwide to provide updates on the rehabilitation. — VS,  GMA News