PBCom still bidding for Unitrust

The Philippine Bank of Communications (PBCom) has not formally withdrawn its bid to acquire Unitrust Development Bank (Unitrust), but has expressed apprehension in completing certain requirements of the Philippine Deposit Insurance Corp. (PDIC), the receiver of the troubled bank.

In an official communication, PBCom said that it was apprehensive about meeting the Aug. 4 deadline set by the PDIC for completion of the documentary requirements for PBCom’s rehabilitation plan for Unitrust.

"After evaluating the additional requirements requested by PDIC, PBCom found these difficult to secure. Hence, the bank gave notice to the PDIC that compliance to the remaining requirements is difficult at this time," the PBCom told the Philippine Stock Exchange (PSE).

The bank was referring to the requirement of getting the 100 percent written approval of PBCom’s rehabilitation plan from the present stakeholders and stockholders of Unitrust. That is part of the requirement by government whenever a party wants to acquire an existing although troubled financial institution like Unitrust.

The problem actually lies in that there are now two groups claiming control of the bank. The first is a group headed by Francis R. Yuseco, Leopoldo J. Valcarcel and lawyer Fred L. Gutierrez. Yuseco and Valcarcel were minority stakeholders prior to the controversy while Gutierrez claims to represent the then majority holdings of G. Cosmos Philippines.

Last week, the group threatened to seek judicial rehabilitation when their bid proposal was rejected by the PDIC.

Earlier, they claimed to have arrived at an agreement resulting in complete control of the bank, and claimed that they are in the process of getting a strategic partner.

The First Federal Banking Corp. of Taiwan has reportedly signified is intention of entering into a joint venture should they win the bid to rehabilitate the bank. First Federal would buy 60 percent equity while another 20 percent would be acquired by a group of Filipino investors. Yuseco said he would account for the remaining 20 percent equity.