PDIC to proceed with Exportbank liquidation

The Bangko Sentral ng Pilipinas has ordered the Philippine Deposit Insurance Corp. to proceed with the liquidation of the shuttered Export and Industry Bank (EIB or Exportbank), the PDIC said in a statement Tuesday. The order was issued by the central bank's Monetary Board after receiving PDIC's report on the failure of the bank's proposed rehabilitation to spark interest. The scheduled March 20 rebidding for EIB's rehabilitation was canceled when no letter of interest was received from any of the pre-qualified strategic third-party investors by the deadline of March 18. PDIC will also file a petition for assistance in the liquidation of EIB with the liquidation court, according to procedure. The liquidation of the bank will involve the disposal or sale of assets via bidding and negotiated sale. “The net realizable value of EIB’s recorded assets estimated at P13.65 billion is deficient by P11.02 billion to cover its liabilities aggregating to P24.67 billion as of Dec. 31, 2012,” the PDIC said. EIB was placed under PDIC receivership by the Monetary Board in April 2012 due to insolvency. — BM, GMA News