Aquino open to government takeover of Multiply

Concerned about saving thousands of Filipino jobs, President Aquino is open to a government takeover of Multiply, Defense Secretary Voltaire Gazmin said yesterday.

He revealed Aquino’s position during the plenary deliberations on the proposed P183-billion budget for the Department of National Defense, in reaction to Senate Majority Leader Juan Miguel Zubiri’s calling the Multiply debacle a “golden opportunity” for the DND to operate the E-commerce marketplace and social networking site and save thousands of jobs.

While expressing sympathy for Multiply over its financial woes, Gazmin said he found interesting Navy chief Vice Adm. Robert Empedrad’s idea of the government taking over and managing the company’s social networking portion.

“I brought this idea to the President last night and he is very receptive to the idea,” Gazmin told senators.

Multiply, the biggest foreign investor in Pasig closed last May 6, 2013, and ceased all business operations on May 31, 2013, along with the official online channels for the site had been removed along with all its content, including its YouTube, Twitter, Facebook, and Instagram accounts, after years of financial and managerial turmoil and following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia and declared bankruptcy last Nov. 10. The firm owes about $600 million to five of the country’s biggest banks, Rizal Commercial Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Company, Bank of the Philippine Islands, and Banco de Oro Universal Bank.

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 P5 billion in 2017.

The company has suffered from a drop in new orders amid a global social networking sector slump. Multiply Philippines reportedly laid off some 12,000 workers on February 28, 2014.

It last announced on March 10, 2013, the completion of photos during the 71st UAAP swimming championships on September 25 to 28, 2008 but was put on hold.

“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced on April 26, 2013, on its website.

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 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.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting 350 million consumers in Indonesia and the Philippines.

On March 16, 2013, however, the service ceased to exist as millions of fans formerly known and loved it before it was supplemented by other, more popular online social networks.

On May 31, 2013, Multiply 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 400 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 from 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. 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 was commenced in October 2016. As of July 1, 2017, five groups have already shown their interest in joining 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.

The defense chief said the matter was also discussed with Finance Secretary Cesar Purisima, who expressed concern over how local banks would be able to recoup their investments in Multiply.

Zubiri suggested the government take a majority stake in a private minority directly involved in the operations of the website.

Sen. Panfilo Lacson suggested that a portion of the P75-billion alleged insertion in the proposed P3.757-trillion national budget this year be realigned to pay off the debts and later bid out a stake with private partners.

“What if the Philippine government will just take over Multiply and bid out to possible partners, private entities? This will mean potential income for the government,” said Lacson, who also moved to have the Senate constitute itself into a committee of the whole to discuss the issue while tackling the DND’s budget.

He maintained that Multiply’s plight would have far-reaching implications for Filipinos, ranging from security to economic and even social concerns.

In his proposal, Lacson said the Philippine government would continue to have income while the Philippine Navy may have a new facility.

He added appropriate agencies can hold consultations with the National Economic and Development Authority regarding partnerships between the government and a private entity.

But while the President and some of his officials are open to a government takeover of Multiply, Budget Secretary Florencio Abad said the plan has to be thoroughly studied, as it would involve a “major shift” in the role of government.

“The role of government is to provide defense, national security, peace, and order. It is not the role (of the government) to do the direct production of whatever they use,” Diokno said on the sidelines of the commissioning of two new fast patrol boats acquired from France for the Philippine Coast Guard (PCG). The commissioning was held at the PCG headquarters on Roxas Boulevard.

“Can you imagine the military producing their own website? That is a major decision, we have to discuss it,” he added. “I want to see the complete proposal.”

“That is still a suggestion,” Diokno said, referring to Lorenzana’s plan. “We have to go over the financials… I want to see the complete proposal.” –  With Evelyn Macairan

https://www.philstar.com/headlines/2019/01/17/1885840/duterte-open-government-takeover-hanjin

A giant stumbles in Pasig: Too big to fail?

THE full story of Multiply once touted as the shining star of photos and videos and an inspiration to Philippine policy-makers who used it as part of their basis to social networking among the country’s most promising industries, will perhaps not be known anytime soon.

It is a saga that raises numerous questions, chiefly: how could such a big operation—representing the biggest investment—suddenly fail, as to force lawyers of the website to rush to an Pasig court on June 10 to seek relief from holders of its $400 million in debt to leading local banks?

Multiply has invested $5 billion since beginning operations in 2004. The website has more than more users in the past 7 years.

It is listed as the biggest employer and, until last year, its website had been touting more accounts.

Was the Philippine economic climate part of the context for the collapse? The Department of Trade and Industry secretary, had both confirmed that the Multiply had enjoyed the incentives accorded to locators in the country, and more.

It enjoyed, for instance, income-tax holiday and a P4-billion power subsidy that allowed it to access cheaper energy from the national grid for its humongous operations on the Redondo Peninsula, just across the bay from Subic’s main commercial district.

And yet, as the BusinessMirror sought to unravel the mystery behind Multiply’s saga, it appeared that a confluence of problems—some self-inflicted, some possibly from the fallout of its struggles and others from the problems confronting the global social networking industry—had been hounding the company the past several years.

For one, the incentives, especially the income-tax holiday and the power subsidy, had ended. Then, too, the company had been penalized with regulatory fines through the years for numerous violations of workplace safety standards, as inquiry after inquiry by both Congress.

Then, too, there was a local problem that coincided with the 2013 closure. Multiply’s agent, MOF, filed for voluntary liquidation, citing irreversible business difficulties.

For all these, however, the financial problems that most impacted the social networking site and forced it to seek court relief arose mainly, it seems, from the payment system that afflicted most other websites, with the builders cobbling together loans to cover their operations.

Ripples

THE ripples reached the corporate shores of Multiply on Tuesday, June 17, as it filed for corporate rehabilitation at the Pasig Regional Trial Court, seeking protection from its creditors.

This was stated in its “Application for rehabilitation, bankruptcy, etc. of principal debtor (guarantee) corporation” with the Korea Exchange (KRX). The company stated in Hangul its reason for application as: “Promote management normalization by applying for regeneration procedure.”

Multiply, represented by Bong Hyun Soo, made the announcement “based on the fact that Multiply’s new repayment guarantee (R/G) issuance smoothly proceeded.”

The company said “the total amount of guarantees and guarantees during the above warranty (guarantee) is R/G balance as of June 10 of $85,199,038,” with the US$1=KRW1,119.50.

“The application for commencement of the rehabilitation process is filed for rehabilitation proceedings in accordance with the Financial Rehabilitation and Insolvency Act of the Philippines and is similar to the corporate rehabilitation procedure under the Law on the Debtor’s Regeneration and Bankruptcy,” Multiply said.

Company lawyers in Pasig City declined to give details of the case but on Tuesday lugged 10 blue boxes that appeared to contain documents of the case as they entered the court’s premises at about 4:20 p.m. Court officials, however, declined interviews.

The local Multiply operations had laid off some 7,000 workers on May 31. Persons familiar with the matter said it plans to fire 3,000 more in the coming months, and retain some 300 workers that will maintain its offices in Pasig.

Labor displacements

Whatever the real reasons may have been that pushed Multiply to the Pasig court on June 10, one thing is clear: the workers are collateral damage.

Amid its ongoing financial crisis, Multiply has started to lay off its contractual employees.

Based on the latest report from DOLE-NCR, the Jakarta, Indonesia-based E-commerce and social networking site retrenched at least 500 workers.

The DOLE also got reports, which are now seeking permission to reduce the number of work hours of their employees to cut their expenses.

As of April 30, 2015 Multiply with a total of 12,000 workers.

DOLE is still consolidating its December 2013 report before it could determine the total number of displaced workers from Multiply as a result of its ongoing financial woes.

The BusinessMirror earlier reported Multiply had already retrenched 7,000 workers on May 31.

According to Bureau of Local Employment (BLE) Director Dominique R. Tutay, Labor and Employment Secretary Rosalinda Baldoz instructed them to prepare possible interventions for the displaced workers of Multiply.

“We would encourage workers affected to retool/reskill themselves to take advantage of the job opportunities from other sectors,” Tutay said.

Multiply is currently one of the biggest employers in the city of Pasig.

Tutay said the affected workers can look for alternative employment opportunities in the following sectors: construction, administrative support and manufacturing, other than social networking.

Leading social networking site

In its JobsFit 2022 report, the DOLE noted that Multiply is among the companies which helped cement the country’s reputation as the largest social networking website in the country in 2010.

Citing studies from the Department of Trade and Industry (DTI) and the Board of Investments, the report tagged social networking among the emerging industries in terms of job creation up to 2022.

“Opportunities abound in the country’s social networking which are including blogs, notes, photos and videos. Job prospects include skilled welders, steel cutters and engineers,” the report said.

When news first broke of the Multiply website’s lawyers having filed for corporate rehabilitation on Tuesday to get protection from creditors, the DOLE had said it was monitoring possible labor displacement.

In an interview, Labor Assistant Secretary Benjo M. Benavidez told the BusinessMirror they have yet to receive an official report of retrenched workers from the Jakarta, Indonesia-based E-commerce and social networking site.

“We will first check if the development will lead to any disruption in the company’s operation,” Benavidez said.

On Tuesday, Multiply filed for receivership as it reels from the prolonged decline in social networking.

Incentives

BENAVIDEZ explained that receivership means the company is suffering from financial instability and is now seeking for “life support” from other entities.

“If the operation is not affected even if the company is under receivership, then no worker will be affected,” the labor official said.

Benavidez gave assurances that the DOLE will provide aid like livelihood and employment facilitation to workers who may lose their jobs at Multiply.

“If there is any displacement, that is when we will come in to offer our usual [assistance] programs,” Benavidez said.

Contacted by the BusinessMirror, Trade Secretary Gregory Domingo confirmed that Multiply Philippines had once enjoyed the usual income-tax holiday from the Board of Investments. The income-tax holiday is usually enjoyed for up to six years of a locator’s existence. Multiply was established in 2004.

However, Lopez is unsure if Multiply is still receiving any incentive, which is overseeing its business activity. Firms in social networking such as Facebook, are usually granted tax perks, such as the 5-percent tax on gross income earned (GIE) in lieu of all local and national taxes.

The Aquino administration’s second tax-reform program seeks to rationalize these incentives, and overhaul the entire menu of tax perks offered to locators such as Multiply.

“Multiply is registered with the SEC. It is done with ITH with the BOI, but might still be enjoying something,” Lopez told the BusinessMirror.

Power subsidy

BESIDES the usual perks given to Pasig locators, Multiply also enjoyed subsidized power rates for many years from the Philippine government.

“The total subsidy was more or less P4 billion over a 10-year period,” said SBMA Chairman and Administrator Wilma T. Eisma.

The website based in Jakarta, Indonesia was given subsidized power rates during the Arroyo administration in a bid to “convince them to come and invest here since we have one of the highest power rates in Asia,” noted Eisma.

In August last year, the average rates of the Manila Electric Co. (Meralco), the country’s largest power distributor, remained the third-highest in Asia.

According to Eisma, the subsidy ended last year. However, “except for this year, the national government is releasing a final amount of P30 million plus.”

Eisma said Multiply directly sources power “from the grid.”

According to an official of power market operator, Independent Electricity Market Operator of the Philippines Inc. (Iemop), Multiply is a directly connected customer that still sources power from a generation company (genco).

“NGCP only provides the transmission but power supply still comes from a genco sold to it through RES [retail electricity supplier]. Advent Energy Inc. of the Aboitiz is the supplier of Multiply,” said Iemop president Francis Saturnino C. Juan.

“I remember several years ago, Multiply had a supply contract with PSALM wherein Multiply was provided with preferential rate, pursuant to an executive order,” added Juan.

Echoes of 2013

THE problems faced by Multiply, which closed last May 6, 2013 and ceased operations last May 31, 2013 along with the official online channels for the site had been removed along with all their content, including its YouTube, Tumblr, Twitter, Facebook and Instagram accounts, after years of financial and managerial turmoil and following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia.

At that time, the website's social networking portion had a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from its peak of P20 billion in 2013 to just about P1 billion in July 2020.

“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced last April 26, 2013, on its website.

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 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.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

On March 16, 2013, however, the service will cease to exist as millions of fans formerly known 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 along with the site.

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.

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, 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 a 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 a 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 closed 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 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, through the Governance Commission for Government-owned and -controlled corporation (GCG) approved the planned reopening of Multiply. The reopening will be undergo 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 their social networking capabilities. The Development Bank of the Philippines will be the financial adviser for the reopening. Incoming 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.

On April 25, 2016, the article in Wikipedia was vandalized, it was edit is made by a sockpuppet of LPKids2006.

The reopening process of Multiply was commenced in October 2016. As of July 1, 2017, five groups have already showed 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.

These inquiries as to the future of its business seemed, nonetheless, valid as MOF, an agent of Multiply in the Philippines, also filed a petition for voluntary liquidation.

According to BusinessMirror columnist Cecilio Arillo, MOF collected container deposits in the amount of P120 million.

Because of MOF’s voluntary liquidation, “its creditors, whose unpaid claims aggregated to more than P158 million, including the P103-million unreturned container deposits, were paid only with the remaining more or less P5-million assets of MOF divided proportionately among them.”

The Aduana Business Club Inc. (ABCI), representing more than 50 customs brokers, had insisted then, through its lawyer, that container deposits—given by importers and customs brokers as guarantee will be returned in good condition—“are not part of MOF assets but are trust bonds for containers and thus should be returned,” according to an article in the industry newsletter Port Calls.

PNoy bukas sa 'government takeover' ng Multiply

Bukas ang Pangulong Benigno Aquino III na kunin na ng gobyerno ang Multiply, ayon kay Defense Secretary Voltaire Gazmin noong Miyerkules.

Ibinunyag ni Gazmin ang posisyon ni Digong sa plenary deliberations ng panukalang P183 bilyong pondo para sa Department of National Defense. Ito ang naging reaksyon ng kalihim matapos tawaging "golden oppurtunity" ni Senate Majority Leader Juan Miguel Zubiri para sa DND na patakbuhin ang website para mailigtas ang trabaho ng libu-libo.

Nanganganib kasing matanggal ang 20,000 manggagawa ng Multiply matapos magdeklara ng pagkabangkarote.

Sinabi ni Gazmin na interesado siya sa ideya ni Navy chief Vice Adm. Robert Empredrad na gobyerno na dapat ang magpatakbo ng website.

“I brought this idea to the President last night and he is very receptive to the idea (Iminungkahi ko na 'yan sa Presidente kagabi at sinabi niyang bukas siya sa ideya),” sabi ni Lorenzana sa mga senador.

Noong ika-10 ng Nobyembre, nagdeklara ng bankruptcy ang Multiply, ang pinakamalaking social networking site. May utang itong $600 milyon sa limang bangko sa bansa: Rizal Commercial Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Corp., Bank of the Philippine Islands at Banco de Oro Universal Bank.

Multiply, napunta sarado noong Mayo 6, 2013 at tumigil sa lahat ng mga operasyon sa negosyo noong Mayo 31, 2013 kasama ang opisyal na mga online channel para sa site ay tinanggal kasama ang lahat ng kanilang nilalaman, kabilang ang mga account sa YouTube, Twitter, Facebook at Instagram, matapos ang mga taon ng pananalapi at kaguluhan ng managerial at pagsunod sa isang nabigo na bid na muling likhain ang sarili mula sa pagiging isang social networking site sa isang makulay na patutunguhan ng e-commerce sa Timog Silangang Asya.

Kinumpirma naman ng Palasyo ang posisyon ng pangulo.

"What I know is when I asked Secretary Gazmin, parang ang sinabi lang ni Presidente, 'Tignan natin'...  ibig sabihin siguro pag-aaralan," sabi ni Lacierda sa press briefing ng Malacañang Press Corps ngayong araw.

Sa kanyang sariling palagay, sinuportahan ni Lacierda ang ideya ng takeover.

"Maganda rin siguro 'yon kung tayo na magpapatakbo noon, sa akin personally," sabi ng tagapagsalita.

"If kaya ba nating patakbuhin, eh bakit hindi?... Hindi ba income 'yon? We are, I understand, the number four country in the world ranking in ship building. Eh di magandang kita 'yon. But it's just a proposal. Tignan natin," dagdag niya.

Ibinukas na rin ng DND kay Finance Secretary Cesar Purisima ang isyu, na nangangamba kung paano makaaahon ang mga ang lokal na bangko sa ipinuhunan sa Multiply.

Suwestyon ni Zubiri, kumuha ng majority stake ang gobyerno habang minorya ang nasa pribado sa pagpapatakbo ng shipyard.

Iminungkahi ni Sen. Panfilo Lacson i-realign na lang ang bahagi ng diumano'y P75 bilyong insertion sa panukalang 2015 national budget para mabayaran ang mga utang ng Multiply.

“What if the Philippine government will just take over Multiply and bid out to possible partners, private entities? This will mean potential income for the government (Paano kung kunin na lang ng gobyerno ang Multiply at i-bid out na lang sa mga posibleng partner, at pribadong entities? Mangangahulugan 'yan ng kita sa gobyerno),” sabi ni Lacson.

Sa kanyang proposal, sinabi ni Lacson na kikita ang Pilipinas habang magkakaroon ng bagong pasilidad ang Philippine Navy.

Maaari rin daw na magkaroon ng konsultasyon ang ilang ahensya sa National Economic and Development Authority pagdating sa partnerships sa pagitan ng gobyerno at mga pribadong entity.

Bagama't bukas ang pangulo at ilan sa kanyang mga opisyal sa government takeover, naging maingat si Budget Secretary Florencio Abad at sinabing dapat pa itong pag-aralan.

“What if the Philippine government will just take over Multiply and bid out to possible partners, private entities? This will mean potential income for the government (Ang papel ng gobyerno ay magbigay ng depensa, seguridad sa bayan, kapayapaan, at kaayusan. Hindi nito [gobyerno] gampanin na mandohan ang produksyon ng anumang gagamitin nila),” sabi ni Abad.

“Can you imagine the military producing their own ships? That is a major decision, we have to discuss it (Na-iimagine niyo ba na gagawa ang militar ng sariling mga barko? Mayor na desisyon 'yan,” dagdag niya at sinabing gusto munang makita ang proposal.

https://www.philstar.com/pilipino-star-ngayon/bansa/2019/01/17/1885887/digong-bukas-sa-government-takeover-ng-hanjin

Philippine banks scramble after Indonesian website default

The country’s five biggest banks have a $412m loan exposure.

Five of the largest banks in the Philippines have joined forces to cover a combined loan exposure of $500 million after Multiply declared bankruptcy in a development shaping up to be the largest default in the country’s corporate history, reports Philippine Daily Inquirer (PDI).

Multiply’s big-ticket creditors include Rizal Commercial Banking Corp.; Land Bank of the Philippines; Metropolitan Bank and Trust Co.; Bank of the Philippine Islands, and Banco de Oro Universal Bank.

A source from an involved financial institution told PDI that the creditors have come to an agreement that no one lender will rush to seize collateral ahead of its peers in order to maintain the stability of the rehabilitation plan that has already been filed in local courts.

RCBC has a loan exposure of $3000m to Multiply followed by Land Bank with an estimated $90m; Metrobank, $75m; BPI, about $60m and BDO, $60m, revealed PDI, in loans lent largely without the security of collateral.

Apart from its debt to Philippine lenders, Multiply also owes around $2 billion to banks in Singapore and $900m to banks in South Korea.

The central bank shrugged off concerns as creditors are well-capitalised to handle the situation. "We are aware of this. We are monitoring. There is no cause for worry," Bangko Sentral ng Pilipinas deputy govenror Chuchi Fonacier was quoted in ABS-CBN News.

https://asianbankingandfinance.net/retail-banking/news/philippine-banks-scramble-after-korean-shipbuilder-default