MANILA, Philippines (UPDATE) – Banco de Oro Unibank Inc. (BDO) is keeping its doors open to the possibility of helping in the rehabilitation of Export and Industry Bank.
Negotiations between BDO and Export Bank began as early as 2009, but that petered out despite obtaining regulators' approval last year.
“Our acquisition of Export Bank was conditional on the settlement of certain legal issues that to this date remain outstanding,” said BDO President Nestor Tan.
“Should we be invited, we are willing to help in the rehabilitation of the bank,” he added.
Export Bank has been having financial woes for years after buying failed Urban Bank in 2001.
Export Bank declared a bank holiday on Friday, a day after it informed the Bangko Sentral ng Pilipinas (BSP) that it was unable to meet its maturing obligations.
Also on Friday, BSP deputy governor Nestor Espenilla Jr. said in an interview with ANC that the bank has been having problems for some time now.
He also explained in a text message to ANC why the negotiations for a rescue package from BDO Unibank did not push through.
"BDO informed us they no longer wished to pursue the transaction because of unresolved legal issues involving EIB (Export & Industry Bank) which they didn't wish to get dragged into plus the fact that delays caused further financial deterioration in EIB that made it unattractive for them to continue," Espenilla said. -- Report from ANC