3 regional banks eye Urban Bank

The Philippine Deposit Insurance Corp. (PDIC) is optimistic of finding a white knight for Urban Bank, with three banks expressing interest in bidding for the bank.

PDIC executive vice-president Ricardo Tan said the banks, "all within the region" have been provided with the books of Urban Bank detailing its financial condition to help them firm up their proposals to resuscitate the bank and bring it back to profitability.

Tan refused to name the interested parties, saying the banks want complete confidentiality.

"We expect serious proposals from those which have inquired after the Bank of Commerce (BOC) formally announced it is canceling plans to merge with Urban Bank," Tan said.

Tan said the PDIC remains confident that the legal hitches, will not erode Urban Bank’s chances of getting out of the money pit and finding new buyers.

"We have valid grounds for being optimistic and believe that a turnaround is still possible," Tan said.

The PDIC has set a March 16 deadline for interested buyers to signify their interest in rehabilitating the closed bank.

The interested buyers will be convened in an investors’ forum the PDIC will conduct with KPMG Laya Mananghaya and Co., its appointed financial advisor for the rehabilitation of Urban Bank.

KPMG is an internationally recognized professional advisory firm specializing in extensive auditing, tax work and management consultancy.

BOC which last year won over other bidders for the bank, put at bay plans to revive the bank because of the unresolved cases against the bank’s officials.

Urban Bank was forced to declare a bank holiday last April 25 after it was hounded by liquidity problems arising from heavy withdrawals of depositors. – Rocel Felix