In a letter to the Philippine Stock Exchange, EIB said the rationalization of its various subsidiaries and affiliates started upon the takeover and merger of EIB, Urban Bank Inc. and Urbancorp Investments Inc. last year, and was led by the sale of its travel agency Urbancorp Travel Services Inc. to the Unilab Group in December 2001.
"The other subsidiaries are pending rationalization and we hope to submit to the Bangko Sentral ng Pilipinas the bank’s plan for these other subsidiaries by February 2003," EIB officials said.
EIB said it has decided to reactivate the operations of EIB Realty Developers Inc. (formerly Urbancorp Realty Developers Inc.), EIB Securities (formerly Urbancorp Securities), and Urbancorp Life and General Insurance Inc. which will be renamed ValueLife Financial Inc.
The remaining units, meanwhile, include Philippine Home Development Corp., UMC Finance and Leasing Corp., Urbancorp Development Bank, Urbancorp Technologies Inc., Urbancorp Realty Holdings Inc., Urbancorp Insurance Brokers Inc. and Urban Building Technologies Inc.
UMC Finance and Leasing Corp. is a partnership with the Universal Motors Group and Nichimen Corp. while Urbancorp Development Bank is also Cebu Development Bank, a wholly-owned thrift bank that was included in the approved rehabilitation plan for the Urban Bank Inc. and Urbancorp Investments.
In April 2000, Urban Bank was forced to declare bank holiday after failing to cover its deposit liabilities of more than P8 billion in the spate of massive withdrawals. The bank’s collapse was linked to the "anomalous and highly abnormal" sale by Urbancorp Investments to Urban Bank of P4.6-billion worth of debt papers of companies with doubtful capacities to pay, hence depleting the bank’s cash and quick assets.
Last year, EIB, a partnership with the Lippo Group of Indonesia, won in its bid to take over and rehabilitate the former universal bank. – Conrado Diaz Jr.