Asiatrust restructures, closes banking operation

MANILA, Philippines - Asiatrust Development Bank Inc. is on track for the restructuring of its operations as it expects to close its banking business on June 18 this year, a disclosure to the Philippine Stock Exchange (PSE) said.

The company informed the PSE that it has already applied for the change of its corporate name to NextGenesis Corp. and other related amendments to its Articles of Incorporation.

The permanent closure and cessation of the bank’s operations stemmed from the asset sale and purchase agreement (ASPA) with Asia United Bank (AUB).

“We have turned-over to AUB all the assets and liabilities subject of the ASPA,” it added.

Likewise, it said it had formally surrendered to the Bangko Sentral ng Pilipinas its banking and trust license.

The company is currently liquidating of its trust assets.

On Jan. 23, its board of directors approved the reorganization plan through the reduction of its authorized capital stock by way of the reduction of the par value of the common shares from P10 to P0.64 per share.

The capital surplus created due to such decrease, it said, is P973.56 million including the existing additional paid-in capital of P143.018 million which shall be used to wipe out all of Asiatrust Bank’s deficit to the extent of P1.1 billion subject to adjustment and, any remaining capital surplus created shall be retained as additional paid-in capital.

“The reason for the proposed decrease in the authorized capital stock of the corporation and the resulting amendment of its Articles of Incorporation is to wipe out the deficit of the corporation in order to allow the corporation to have a clean balance sheet to start anew following the disposal of its banking business,” it said.

The stockholders, it said, would be able to directly and immediately benefit from any potential income stream from any new investments of the corporation without the need to wipe out any deficit.

As a result of such decrease in authorized capital stock of the corporation, it will remain as a holding company and will continue to be owned by the same shareholders.

The reorganization, it noted, would however result in a smaller capitalized company with a clean balance sheet.