MANILA, Philippines - BDO Unibank on Wednesday said it submitted a proposal to rehabilitate the recently shuttered Export & Industry Bank, which is currently under receivership.
"BDO Unibank, Inc. confirms submission of a proposal for consideration of the Philippine Deposit Insurance Corp. (PDIC)," the Sy family-led bank told the stock exchange.
The Philippine Daily Inquirer reported that BDO has submitted a proposal that "it is prepared to move in immediately" and take over some P14 billion in the bank's deposit liabilities.
The PDIC said it is reviewing BDO's proposal to rehabilitate Export Bank. However, it noted that some of BDO's conditions are not within the scope of the PDIC's authority.
"BDO has submitted a proposal to rehabilitate EIB with certain conditions. PDIC is reviewing the legal and economic viabilities of said proposal. Some of the conditions as proposed are not within the authority of PDIC," it said.
As receiver of Export Bank, the PDIC has 90 days to determine a rehabilitation proposal that will be advantageous to depositors, creditors and taxpayers. It is sill coming up with the terms of reference, as well as engage the services of a financial auditor to determine the valuation of Export Bank.
Any rehabilitation proposals will then be submitted to the PDIC Board, and later the Monetary Board, that will approve it.
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. Should we be invited, we are willing to help in the rehabilitation of the bank," BDO President Nestor Tan earlier said.
Export Bank has been having financial woes for years after buying failed Urban Bank in 2001.
Export Bank declared a bank holiday last month, after it informed the Bangko Sentral ng Pilipinas (BSP) that it was unable to meet its maturing obligations.