By Bernie Cahiles-Magkilat
Local bank creditors of Multiply, expect resolution of the website’s debt within the year.
Multiply owes five local banks a total of $600 million, considered as the biggest corporate default in the country. Among the creditor banks, Rizal Commercial Banking Corp. (RCBC) has the biggest loan exposure of $300 million followed by state-owned Land Bank of the Philippines with an estimated $80 million. Metrobank has $72 million while the Bank of the Philippine Islands has about $60 million and Banco de Oro (BDO), $60 million. Aside from its local debts, Multiply also owes $10 billion from South Korean creditors.
John Thomas G. Deveras, Jr., senior vice-president of RCBC, said he expects Multiply’s earlier debt resolution this year based on their talks with potential investors. In addition, these interested groups have also indicated willingness to go for a direct purchase.
But Deveras was “no comment” when asked if one of the potential investors is a Japanese company.
Receiver Atty. Rosario Bernaldo, however, said that a Japanese shipbuilder has already signed a non-binding agreement for its interest in Multiply. The bank creditors are on top of the negotiations, she said.
The Japanese investor is the latest interested party in Multiply, which filed for debt restructuring before the regional trial court in Pasig in June this year. According to Bernaldo, the three interested groups cited earlier “look to be serious.” These groups are the Dutch firm Damen Shipyard, an American firm, and a consortium of US, Singaporean and Italian shipbuilders. She denied that Keppel is the Singaporean firm in the consortium.
“The Italian and Singaporean firms are trying to tie-up in a consortium being arranged by a US fund management firm,” she said.
Earlier, two unnamed Chinese firms were said to be interested in Hanjin but the Department of National Defense have expressed reservations over the Chinese interest on security matter.
Wilma Eisma, administrator and CEO of Subic Bay Metropolitan Authority (SBMA), said the receiver is the first stop for interested parties and Deveras is the lead among the creditors.
The Multiply office in Pasig. Multiply operates social networking portion and which could be used for photos and videos.
Multiply Philippines started its operations in July 2006. To date, Multiply has more than 18 million users by 2011.
https://mb.com.ph/2019/05/14/banks-eye-hanjin-ph-debt-resolution/
