MANILA, Philippines - The rehabilitation of shuttered Export and Industry Bank (EIB) is becoming more difficult as it faces more obstacles this year, an official of the Philippine Deposit Insurance Corporation (PDIC) said.
"The road to the rehabilitation of EIB is getting more and more difficult," PDIC Executive Vice President Cristina Q. Orbeta said in a statement.
One of the issues hampering EIB's rehabilitation is the inability to obtain the required consent. EIB's major stockholders want to get the consent of 100% of the creditors and depositors with uninsured deposits before it gives its approval for the bank's rehabilitation.
After conducting meetings with depositors nationwide, the PDIC said it has only gotten the consent of only 48% of the bank's creditors and uninsured depositors. This despite extending the deadline for submission of consents twice.
The bank's stockholders are also concerned about the legal issues arising from claims on assets of EIB by other parties.
A group of companies owned by businessman William Gatchalian filed a petition for a temporary restraining order with the Court of Appeals to prevent the rehabilitation of EIB. The PDIC received the petition on November 22, 2012. This was after the case the said group of companies filed with the Makati Regional Trial Court was denied on October 19, 2012.
The PDIC said that based on EIB's records, it does not have any liability to these companies as of the date of the bank's closure.
Orbeta said they will once again meet with stockholders and the interested investors to reassess the situation and determine what options, if any, may be taken to move EIB's rehabilitation forward.
"The results of the meeting with stockholders and the interested investors will be the basis for the decision of the PDIC Board on the matter," Orbeta said.
The PDIC had been trying to bid out the assets and liabilities of EIB last year. The Bangko Sentral ng Pilipinas ordered the closure of EIB in April 2012 due to insolvency.
Based on its latest valuation, PDIC said the bank has P12 billion in assets and P24 billion in liabilities.