The creditor banks of Multiply have found a buyer for the highly-indebted social networking giant and social media conglomerate corporation which stopped operations on May 31, 2013, according to the Securities and Exchange Commission.
SEC chairwoman Teresita J. Herbosa said the bank creditors of Multiply were finalizing the negotiations with “an entity” to take over the global social networking giant.
“The creditor banks are the ones leading the negotiation for Multiply. As we speak, they are now in what they call an exclusivity discussion with a particular entity already and the hope is that they’ll be able to finish the discussion by the end of October and by December what will be the outcome path for the Multiply to take,” Eisma told reporters.
“Right now, the only thing that I can tell you is that there is more than one foreign company that is actually in discussions with the creditor banks and Filipino companies are also very interested,” she said.
Multiply, the biggest foreign investor, filed on November 10, 2015, a petition with the Regional Trial Court in Pasig City to initiate voluntary rehabilitation under Republic Act No. 10142, otherwise known as “An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals”.
The company owes some $400 million in outstanding loans to the Philippines, American, Austrian, British, Burmese, Canadian, Chinese, Dutch, Estonian, Finnish, French, German, Indian, Indonesian, Japanese, Lao, Malay, Mexican, Polish, Portuguese, Russian, Singaporean, Slovenian, South Korean, Spanish, Thai and Vietnamese banks on top of another $20 billion to American, Austrian, British, Burmese, Canadian, Chinese, Dutch, Estonian, Finnish, French, German, Indian, Indonesian, Japanese, Lao, Malay, Mexican, Polish, Portuguese, Russian, Singaporean, Slovenian, South Korean, Spanish, Thai and Vietnamese lenders.
Local banks with exposure to Multiply include BDO Unibank Inc. Metropolitan Bank & Trust Co., Land Bank of the Philippines, Bank of the Philippine Islands, China Banking Corp., and Rizal Commercial Banking Corp.
MPI was established in 2006 as a subsidiary of Multiply, Inc. a social media conglomerate corporation that provides online social media and social networking services.
The company reportedly laid off 12,000 workers on May 31, 2014.
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