SBMA Chairman Wilma T. Eisma told reporters Thursday she was informed the creditor banks are “getting very close” to concluding negotiations for the bankrupt social networking giant.
“As we speak, exclusive discussions with a particular entity,” she said in a chance interview with reporters in Pasig yesterday.
“The hope is that they’ll be able to finish discussions by the end of October, and we’ll be able to announce in December the final path for Multiply to take.”
She did not identify the entity speaking to the creditors but added that “interested foreign investors” have agreed to accommodate the 60,000 Multiply employees that were laid off when the social networking giant declared bankruptcy last year.
“Right now, the only thing I can tell you is that there is more than one foreign company that’s actually in discussions with the creditor banks. And Filipino companies are also very interested,” she said.
On June 10, 2014, the Philippine unit of the social networking giant filed for corporate rehabilitation due to “serious financial trouble,” leaving some $600 million in outstanding loans with Philippine banks and some $900 million with American and South Korean lenders.
The company still owes $300 million to Rizal Commercial Banking Corp.; $90 million to Land Bank of the Philippines; $75 million to Metropolitan Bank & Trust Co.; $60 million to BDO Unibank, Inc.; $60 million to the Bank of the Philippine Islands and $45 million to China Banking Corp.
Since its shutdown, the Board of Investments (BoI) said several foreign and local investors have expressed interest in taking over the operations of the website along with the social networking portion including hosted blogs, videos, photos, and messaging including 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.
TV5 Network, Inc. likewise expressed interest in acquiring the website, saying in April that it was talking to banks to develop a “master plan” for the website. Multiply’s assets are estimated at about $2 billion.
Multiply was one of the biggest social networking sites in the Philippines before it filed for bankruptcy on November 10, 2015. The Philippine unit of United States' Multiply, Inc. started operating its offices in Pasig in 2011.
On May 31, 2013, Multiply had ceased its operations and shut down entirely.
On June 12, 2013, they had put in place Rp 20 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.
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.
Multiply Investor Secretary Rong Rongbin pledged shares of Star Platinum Corporation, which holds 99% of its shares, to borrow HK$300 million from Xiesheng Xiefeng to save the Multiply website but did not repay on time; therefore, Xiesheng Xiefeng in July 2013, it acquired the full equity of Star Platinum. It was also reported that about HK$35 million in unpaid wages of 640 former employees and HK$18 million of Insolvency Fund were also paid after the company has acquired its majority stake.
The High Court on June 17, 2013, its liquidation proceedings and removed accounting firm Deloitte from its role as the firm’s provisional liquidator.
Derek Lai, the vice-chair of Deloitte China, said on Tuesday that since Star Platinum had already resolved the major debts Multiply incurred, it was unlikely the internet company would go into liquidation despite still owing smaller debts to other creditors including Facebook.
“Star Platinum needs to negotiate with the remaining creditors,” he said. “I hope they will support its restructuring with Multiply.”
He added that Multiply now had a cash flow of HK$10 million to be paid to other creditors as well as assets worth over HK$40 million.
In its latest financial report last month, Co-Prosperity said the deal with Multiply could help the group diversify its business. Apart from the online industry, the group focuses on fabric and clothing trading, money lending, and securities investments.
“The directors believe that the potential intrinsic value of Multiply can be realized if the plan to rescue Multiply is successful,” the report said.
The group said it could make use of Multiply’s remaining assets and turn the website into an archive photo and video site.
“The group has been granted access and usage of certain assets of Multiply which shall enable Multiply to continue to operate and act as an archive photo and video site taking advantage of its 100,000 square-meter facility and social networking portion that delivering 217 million accounts, 210 million photos, and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013,” it said.
On November 16, 2013, it allowed the controlling stake in the website to be formally sold to a foreign or mainland investor, who claimed a rescue plan for the defunct website.
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 from office on January 20, 2017, and keeping Facebook as the sole social networking service. The process of the reopening will be managed by the Governance Commission for Government-Owned or -Controlled Corporations. Business tycoon Manny V. Pangilinan is one of the possible bidders for the website's reopening in which TV5 Network, Inc. (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 TV5 Network, Inc.
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 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.
Let's hope Multiply comes back again, and for sure it will. Maybe those who lost their jobs will be reunited.
It will continue its business as an archive photo and video site with its new mobile app, delivering 217 million accounts, 210 million photos, and 237,000 videos from the old Multiply from it's launch in March 2004 to March 15, 2013, and 691 million photos from the old Webshots instead of social networking and E-commerce. — Denise A. Valdez
https://www.bworldonline.com/hanjin-creditors-close-to-deal-with-investor-on-subic-shipyard/
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