A series of public biddings of assets of closed banks may enable the Philippine Deposit Insurance Corporation (PDIC) to raise money enougn to pay depositors and creditors of closed banks.
This was bared by Jose Villaret Jr., vice president for PDIC Corporate Affairs Group, who briefed Davao reporters on the coming public biddings scheduled in Luzon and Mindanao on February 15, 19 and 27.
Villaret and two other PDIC officers –Arlene Firmeza, CEO I of PDIC Asset Management Group and Gerardo C. Franco, information officer –came to Davao City last week to promote the public biddings. The team initially met with officers of the Davao City Chamber of Commerce and Industry, Inc. headed by president Arturo M. Milan and chairman Antonio T. dela Cruz, to explain the bidding process and show the list of agricultural, commercial and residential lots to be auctioned during a bidding in the afternoon of Fedruary 27 at the Bangko Sentral ng Pilipinas.
The February 27 bidding in Davao City is the last of a series of three public biddings for assets of closed rural banks in the country, starting on February 15.
The Davao City bidding involves the sale of 104 Real and Other Properties Acquired (ROPA) owned by various closed banks with combined minimum disposal price of P63.9 million. The ROPA consists of agricultural, commercial and residential lots located in Agusan del Norte, Agusan del Sur, Bukidnon, Compostela Valley, Davao del Sur, Lanao del Norte, Misamis Oriental, North Cotabato, South Cotabato, Sultan Kudarat and Surigao del Norte.
The properties will be bid out on an “as-is, where-is” basis. Sealed bids shall be accepted by the PDIC ROPA Committee from direct buyers only between 9:00 A.M. and 1:45 P.M. on designated dates at the respective venues.
Villaret said that past biddings conducted by the PDIC resulted in the government corporation’s being able to earn much money for it to pay the closed bank’s depositors and other creditors who were left unpaid during the closure of the bank.
As example, he cited last this month’s bidding in Cebu City for assets of closed rural banks in the Visayas. He said during the bidding, a property initially offered at the lowest price of P7 million ended up being bought at P20 million. Villaret said he hopes a similar development would happen in future public biddings.
The first public bidding on February 15 will be for the sale of 79 ROPA, 10 motor vehicles and two generator sets with an aggregate minimum disposal price of PHP93.3 million. The ROPA consists of agricultural, commercial and residential lots located in Metro Manila and in the provinces of Batangas, Bulacan, Cavite, Ilocos Sur, Laguna, Misamis Oriental, Nueva Ecija, Pampanga and Rizal. A fishpond in Malabon City is also up for bid.
The second public bidding on February 19 will be for the bulk sale of 438 residential lots, located in Green Farm Royale Subdivision, Barangay Pulong Bunga, Silang, Cavite with an aggregate lot area of 94,514 square meters. A reserve price is set and bidders may submit the best offer for all 438 lots.
Both public biddings will be held at the PDIC Training Room, 9th Floor, SSS Building, 6782 Ayala Avenue, cor. V.A. Rufino St., Makati City.
For the complete list of properties, bidders may check the PDIC website, www.pdic.gov.ph, for easy reference. Prospective buyers are advised to physically inspect the properties they are interested to buy, examine and verify the titles and other evidence of ownership, and determine any unpaid taxes, fees, charges and/or expenses before submitting their bids.
Bids will be opened starting at 2:00 P.M. Each bid should be accompanied by a bond/deposit equivalent to at least 10% of the submitted bid, in cash or Manager’s Check, or a combination thereof. The Manager’s Check should be issued by a reputable universal or commercial bank and payable to Philippine Deposit Insurance Corporation or PDIC. The winning bidder should pay the balance of the bid/purchase price in full within 15 days or no later than March 2, 2018 for the February 15 public bidding, and no later than March 14, 2018 for the February 27 public bidding. For the February 19 public bidding, the winning bidder should pay the balance of the bid/purchase price in full within 30 days or no later than March 21, 2018. If the date falls on a Saturday or Sunday, the winning bidder must pay the balance on the next working day. The PDIC ROPA Disposal Committee shall automatically cancel the award once the issued checks are not cleared.
Bidders are advised to bring proper identification document (ID) with photo and to register at least one hour prior to the deadline for submission of bids. Bid documents such as Bid Forms, Conditions of Bid, and required format of the Special Power of Attorney and Secretary’s Certificate may be downloaded free of charge from the PDIC website, www.pdic.gov.ph. PDIC reserves the right to withdraw without prior notice any or all of the properties offered for sale any time before the deadline for submission of bids.
The list and complete description of the properties are available from the PDIC Asset Management and Disposal Group, 7th Floor, SSS Building, 6782 Ayala Avenue, cor. V.A. Rufino St., Makati City. For further information, interested buyers may call the PDIC Public Assistance Department at (02) 841-4630 to 31. Those outside Metro Manila may call the PDIC toll-free hotline at 1-800-1-888- PDIC or 1-800-1-888-7342. Inquiries may also be sent via e-mail at pad@pdic.gov.ph.
In 2017, PDIC conducted a total of seven public biddings and three biddings with the right of first refusal in Metro Manila, Cebu, Legaspi and Pampanga to dispose of corporate and various closed banks’ assets. The biddings sold a total of 83 properties and generated total sales of PHP259.16 million, representing a premium of PHP58.08 million from the aggregate minimum disposal price of PHP201.08 million.
The expeditious conversion and resolution of assets are among the strategic directions outlined in PDIC’s Roadmap. PDIC, as liquidator of closed banks, conducts various asset disposal initiatives such as biddings, auctions and negotiated sale. Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors in accordance with the rules on concurrence and preference of credits. The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds. Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payment of valid deposit insurance claims.
