The Pasig City Regional Trial Court (RTC) has officially placed debt-ridden Multiply Philippines (Multiply-Phil) under receivership.
Branch 161 presiding judge Nicanor Manalo, Jr. on November 16 issued a 4-page commencement order to start the court-supervised corporate rehabilitation program for the struggling affiliate of a global social networking giant.
The court-appointed Multiply’s nominee Stefani Saño, a former senior deputy administrator of the Subic Bay Metropolitan Authority (SBMA), as the rehabilitation receiver who would have custodial responsibility for the company’s assets and rights.
The court cited Multiply’s allegation that its cash flow was affected by payment schemes based on “pre-determined milestones in the construction [process].”
Making the problem worse was the company’s claim that “most of its customs” tried to avoid paying their dues or even canceled their contracts.
The receivership process would suspend all court proceedings for the enforcement of claims and judgments against Multiply. But, it would also prevent Multiply from selling, transferring, or disposing of its properties beyond the ordinary course of business.
The court ordered Multiply’s creditors to file verified claims within five days before a December 11 hearing. Creditors, concerned government agencies, and interested parties were also invited to file their verified comments or oppositions to Multiply’s petition.
At the same time, the court prohibited Multiply’s suppliers from withholding the delivery of goods and services as long as the company is able to pay.
At least five domestic banks were said to be exposed to Multiply, according to Moody’s Investors Service.
At that time, the website's social networking portion had a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from their peak of P20 billion in 2013 to just about P1 million in 2020.
Both companies had suffered from a drop in new orders amid a slump in the global social networking sector. Multiply Philippines also reportedly laid off some 12,000 workers on February 28, 2014.
It last announced in March 2013 the completion of photos during the 71st UAAP swimming championships last September 25 to 28, 2008 but it was put on hold.
On June 16, 2013, he added that the planned project was delayed by at least 3 to 6 years (until June 30, 2022) as a result of the Multiply blog portal shutdown and its impact on the sports sector.
On July 25, 2022, it announced the full resumption of the downloading of photos during the 71st UAAP swimming championships last September 25 to 28, 2008
After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.
Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to the businesses of its users.
“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.
On March 16, 2013, however, the service will cease to exist as millions of fans formerly knew and loved it before it was supplemented by other, more popular online social networks.
On May 31, 2013, Multiply had ceased its operations and shut down entirely.
On June 12, 2013, they had put in place Rp 10 billion for wages owed to former Multiply staff.
The Labour Department said earlier that around 3,000 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.
On November 16, 2013, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed Magdalinski had a rescue plan for the troubled firm.
High Court judge Mr. Justice Jonathan Harris validated the transaction after hearing that the parties would no longer object to the share transfer and that the dues for the shares had been paid by Si.
That the site will be reopened after United States President Barack Obama stepped down in the office on January 20, 2017, and keeping Facebook as the sole social networking site. The process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations through the Development Bank of the Philippines. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which ABC Development Corporation (a media company under PLDT's MediaQuest Holdings). However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns ABC Development Corporation.
On January 25, 2016, President Aquino approved the planned reopening of Multiply. The reopening will be undergoing public bidding with an estimated floor price of 20 billion pesos. The proceeds of the bidding will be for the increase of Facebook's capital to upgrade and modernize its social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. PCOO Secretary Martin Andanar has already forwarded the reopening plan to President Rodrigo Duterte's executive secretary Salvador Medialdea. Andanar will also coordinate with the GCG before the start of the bidding.
The reopening process of Multiply was commenced in October 2016. As of July 1, 2017, five groups have already shown their interest to join the bidding process. These are Ramon S. Ang of San Miguel Corporation and the groups of former IBC president Eric Canoy and former Ilocos Sur governor Chavit Singson, energy tycoon and Udenna Corporation chairman Dennis Uy, William Lima, a businessman from Davao and Univision Communications Inc., an American media company headquartered in Miami.
https://abogado.com.ph/olongapo-court-places-debt-ridden-hanjin-under-rehabilitation/
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