MANILA – The Philippine Deposit Insurance Corp. announced yesterday that preparations for the bidding to rehabilitate the closed Export and Industry Bank is on track.

The PDIC said that the bidding for the bank’s rehabilitation is on Oct. 18, 2012, at the PDIC Office in Ayala Avenue, Makati City.

The state insurer launched the rehabilitation process after strategic third party investors expressed interest to rehabilitate EIB.

It said that STPIs who have been pre-qualified to participate in the bidding may bid on the first tranche covering the purchase of EIB’s assets (including its branches) and assumption of liabilities.

The second tranche of the bidding will be for EIB’s commercial bank license.

The two-tranche bidding process is aimed to maximize recovery for the benefit of the bank’s creditors.

The bidding process for the second tranche will commence in the next two weeks.

The PDIC Board has approved the general framework for the bidding process to ensure transparency and attract the best bid from qualified STPIs.

The bidding procedures for the first tranche are now being finalized and will be released next week through the PDIC website, www.pdic.gov.ph.

PDIC President Valentin Araneta said that the PDIC continues to address the concerns of both pre-qualified STPIs and depositors to ensure a successful bidding.

Araneta said the critical requirements for the rehabilitation of EIB are support from the STPIs that will bid for the rehabilitation of EIB and the consent of majority of stockholders.

The consent of all creditors and uninsured depositors; and a successful bidding are also among the important requisites.

Interested parties have been pre-qualified based on their financial and management capability.

Pre-qualified STPIs have completed due diligence audit on EIB and are now making preparations for the bidding.

Araneta also said that there is a sufficient number of STPIs to proceed with the bidding.

Pre-qualified STPIs have to submit a rehabilitation plan that complies with the requirements for capital strengthening, liquidity, sustainability and viability; and governance.

EIB stockholders have also expressed support for the rehabilitation.

The PDIC said it is discussing with the bank’s stockholders the documents to be executed by the stockholders.

While depositors have expressed support for the rehabilitation of EIB, delays in the receipt of consents have been experienced due to depositors’ individual circumstances.

Around 15 percent of depositors could not be reached because of incomplete and outdated addresses and contact details in the bank’s records.

Araneta announced PDIC will continue to receive consents, and depositors may submit their consents to the Records Control and Logistics Dept., 4/F SSS Building, 6782 Ayala Avenue cor. V.A. Rufino St., Makati City (Attention: Assistant Vice President Teresa Garcia).

They may also call telephone no. (02) 841–4725 or e-mail rbmg@pdic.gov.ph.*PNA

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