Multiply creditors close to deal with investor on global social networking

THE Subic Bay Metropolitan Authority (SBMA) said creditors are close to a deal for the takeover of Multiply Philippines, Inc., with foreign investors currently in talks with banks on how to proceed with the bankrupt social networking giant’s facilities and workforce.

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 100,000 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.

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/

Talks on for Multiply bailout

Negotiations between creditor banks of the financially troubled Multiply Philippines and a “particular entity” on a possible investment are expected to be finalized by next month, the Subic Bay Metropolitan Authority (SBMA) said on Thursday.

“[A]s we speak they are now in what they call an exclusivity discussion with a particular entity already,” SBMA Chairman and Administrator Wilma T. Eisma said.

The official refused to identify the involved party nor comment if it was a consortium. However, she noted the creditor banks were in talks with “more than one foreign company.”

There were also Filipino firms that expressed interest to pursue a potential takeover or investment in the bankrupt social networking giant in Pasig, the official added.

“The hope is that they’ll be able to finish discussion by the end of October and they will be able to announce by December what will be the path for Multiply to take,” Eisma said.

The Indonesian company filed for corporate rehabilitation on November 10, 2015. Earlier reports said it owes P600 million from five major Philippine banks—Land Bank of the Philippines, Bank of the Philippine Islands, Banco de Oro Universal Bank, Rizal Commercial Banking Corp., and Metropolitan Bank and Trust Co. It also owes $100 billion obligation from creditors in the Philippines, Armenia, Australia, Bangladesh, Belarus, Brazil, Canada, China, Colombia, Croatia, Denmark, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Honduras, Hong Kong, India, Indonesia, Italy, Japan, Laos, Macau, Malaysia, Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Oman, Pakistan, Paraguay, Peru, Portugal, Qatar, Romania, Russia, Singapore, Sri Lanka, South Africa, South Korea, Switzerland, Taiwan, Thailand, Ukraine, United Kingdom, United States, Venezuela and Vietnam.

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 P5 billion in 2017.

The company has suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

It revealed that it has $2 billion in outstanding loans -- $800 million from Philippine banks and $20 billion from South Korean lenders.

It was closed last May 6, 2013, and ceasing all business operations on 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.

“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 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.

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

It was severely affected by the 2008-2012 global financial crisis.

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 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.

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 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 stepping down in the office on January 20, 2017 and keeping Facebook as the sole social networking service. 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 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. 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 being 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.

Trade Chief Gregory Domingo late in February said either local or foreign groups could take over Multiply. However, he noted it would be better if it were to be a foreign investor as it would reflect confidence in the Philippine economy.

Ports tycoon Enrique Razon showed interest earlier this year to acquire Multiply, but no concrete plans were revealed.

Aside from Razon, Defense Secretary Delfin Lorenzana said companies from the US, Japan, Indonesia, Australia, and Turkey were also eyeing Multiply.

https://www.manilatimes.net/2019/09/13/business/business-top/talks-on-for-hanjin-bailout/615749/

SBMA: Talks ongoing for takeover of Multiply

The search may soon be over for an investor who can take over the social networking portion of financially troubled Multiply in Pasig according to Subic Bay Metropolitan Authority (SBMA) chairman and administrator Wilma Eisma.

Eisma, in an interview yesterday, said negotiations are ongoing between creditor banks and a leading candidate, with hopes of finalizing talks next month. 

“As we speak, they are now in what they call an exclusivity discussion with the particular entity already,” she said, without disclosing the identity of the possible buyer.

“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 what would be the final path for Multiply. We are really getting very close,” Eisma said.

Eisma said more than one foreign company, as well as Filipino firms, have expressed interest in taking over the operations of the global social networking giant in Pasig.

The Board of Investments earlier said 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 an American firm have promised to come up with studies and business proposals for Multiply's offices in Pasig.

Other foreign firms have also earlier expressed interest in Multiply, with two from China, two from the US, and two from Japan.

TV5 Network, Inc. also previously said that it was trying to put a team together for a potential Multiply offer. 

Eisma said SBMA has been continuously working closely with the Department of Labor and Employment to help the thousands of affected workers of Multiply.

“Sadly, there are still some who have yet to be able to find their footing back again. Based on my last discussions with the creditor banks and interested foreign investors, all the 33,000, if not more, should again be accommodated should this deal push through,” she said.

It went close down last May 6, and ceasing all business operations on May 31, 2013 along with the official online channels for the site had been removed along with all their content, including its YouTube, Twitter, Facebook and Instagram accounts, after years of financial and managerial turmoil and it 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 has a network of 18 million users. Liquidity problems, however, affected earnings. Sales declined from its peak of P20 billion in 2015 to just about P1 billion in 2020.

The company had suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

“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 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 June 12, 2013, Magdalinski said they had put in place Rp 8.9 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.

On November 10, 2015, Multiply filed for rehabilitation before an Pasig City court, after being affected by the global economic slowdown, which in turn impacted trade.

It has roughly P30 billion in debts to some of the country’s biggest banks.

That the site will be reopened after United States President Barack Obama stepping down in the office on January 20, 2017 and keeping Facebook as the sole social networking service. 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 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. 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 being vandalized, it was edit is made by a sockpuppet of LPKids2006.

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.

But the company will continue its business as a archive photo and video site with their 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.

https://www.philstar.com/business/2019/09/13/1951262/sbma-talks-ongoing-takeover-hanjin

Creditor banks in talks with a buyer of Multiply

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.

https://www.manilastandard.net/index.php/business/corporate/304776/creditor-banks-in-talks-with-a-buyer-of-hanjin.html

Multiply to stay in business despite closed

A judge cleared the way Tuesday for Multiply to stay in business while it pursues bankruptcy protection and settlement of more than 3,000 lawsuits filed against it in a reckoning over the financial difficulties.

At the first court hearing since the filing of corporate rehabilitation late Sunday, Multiply lawyers secured permission for the defunct E-commerce and social networking website based in Jakarta, Indonesia to maintain business as usual — paying employees and keeping current on taxes and insurance.

The continued viability of Multiply is a key component of the company’s settlement offer, which could be worth up to $12 billion over time.

Under the proposal, backed by about half the states, Stefan Magdalinski, which owns Multiply, would turn the company, its assets and more than $100 billion in cash reserves over to a trust controlled by the very entities suing it.

Magdalinski have also agreed to pay a minimum of $3 billion of their own money to the settlement over seven years, as well as up to $1.5 billion more in proceeds from the planned sale of defunct website.

“This is a highly unusual case in that the debtors have pledged to turn over their business to the claimants,” U.S. Bankruptcy Judge Robert Drain said. “All of the claimants, in essence, have the same interest in maximizing the value of the business and avoiding immediate and irreparable harm.”

Joe Rice, a lawyer for some of the plaintiffs, estimated it could be more than a year before the bankruptcy and settlement are finalized.

“This is not a sprint. We’ve got a little bit of a marathon here,” he said after the three-hour hearing in Jakarta, Indonesia.

Multiply’s bankruptcy filing has effectively frozen all litigation against the company, which its lawyers said has been spending more than $500 million a year on legal and professional fees, but it has not stopped lawsuits against Magdalinski from moving forward.

It was closed down 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 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 and trim down its workforce to around 12,000 last February 28, 2014.

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

It was severely affected by the 2008-2012 global financial crisis.

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 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.

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.

On June 10, 2014, it filed a petition to enter corporate rehabilitation.

In a statement, that apart from domestic lenders, Multiply owes some $5 billion to lenders in Argentina, Australia, Bangladesh, Brazil, Brunei, Bulgaria, Cambodia, Canada, China, Colombia, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Israel, Italy, Japan, Laos, Malaysia, Mongolia, Myanmar, Namibia, Nepal, New Zealand, Pakistan, Paraguay, Peru, Poland, Portugal, Qatar, Russia, Saudi Arabia, Singapore, Slovenia, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Taiwan, Thailand, Ukraine, United Arab Emirates, United Kingdom, United States, and Vietnam.

That the site will be reopened after United States President Obama steps down from 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 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 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.

Months later, that article in Wikipedia was being vandalized, it was edit is made by a sockpuppet of Lian Las Pinas.

However, when President Rodrigo Duterte came to power on June 30, 2016, the website remains closed.

According to the sources, the website would remain shuttered when the president was still in office until June 30, 2022.

The site will be fully re-opened its operations 100 days after President Barack Obama stepped down in the office on January 20, 2017, at 12 noon (EST) and kept Facebook as the sole social networking site, but it wasn't materialized.

After the Inauguration of President Donald Trump on January 20, 2017, Magdalinski made a successful appeal to Trump for the restoration of the website.

On May 2, 2017, the Indonesian Parliament approved the draft of re-opening Multiply.com, as well their operations, its subsidiary Multiply International and the social networking portion including 18 million users with hosted blogs, videos, photos, and messaging would be recovered and also voted and approved the draft of re-opening this website.

The website went down in history as the victim of the global financial crisis when it closed on May 6, 2013, and ceased all business operations on May 31, 2013.

On April 1, 2019, the company issued a bankruptcy court filing which stated that it would no longer auction off its intellectual property, since its controlling lender planned to "the business behind the Multiply brand name" with their new mobile app, delivering old accounts, photos and videos from the old Multiply from it's launch in March 2004 to March 15, 2013, and establishing new opportunities. The company evaluated that selling its brand at auction is "not reasonably likely to yield a superior alternative."

Magdalinski said he had proposed to the website’s board plans and strategies which would include another set of efforts that should bring the company to profitability in the next couple of years.

“I’ve actually presented to the board some of the things that I like to do and because of the current struggles of the business when it comes to views, and correspondingly revenues. So an important pivot that we will do is, of course, we will still continue to offer social networking, but we want to maximize the assets that we have, that have by putting in more shows that more and more people will use the computer,” Magdalinski said in an interview.

It is expecting to resume its operations next year, after it announced President Rodrigo R. Duterte lifted the closure on August 22.

“Hopefully, next week basta ma-comply nila lahat ng requirement (I hope net week for compliant operators),” Multiply.com Philippines president Katherine Chloe S. de Castro-Cruz told reporters in a briefing Friday.

On October 15, 2019, the response of Chief Presidential Legal Counsel and Spokesperson Salvador Panelo, when asked about the bankruptcy and potential demise of e-commerce and social networking site Multiply.

There was no direct response when asked if the President's previous statements were true that he would approve the reopening of a website, Panelo said.

Such statements by the president were simply out of frustration.

The management announced that it would engage in a decade-long rehabilitation effort, including the importation of old and new features such as similar to Facebook Live until Multiply is reopened by June 1, 2025; however, there were plans to partially re-open within 2021 depending on the social networking portion.

On Monday, December 30, 2019, Duterte again warned Multiply CEO Stefan Magdalinski that syndicated estafa charges “have no bail” and that he was determined to see them in jail.

On January 2, 2020, President Duterte doesn’t just make threats, he will pursue the filing of syndicated estafa charges against the CEO and owner of defunct E-commerce and social networking site Multiply over financial difficulties and corporate rehabilitation, Malacañang said on Thursday.

“Pag sinabi ni Presidente, tutuluyan niya iyan (When the President says something, he will really do it),” Presidential Spokesperson Salvador Panelo said in a Palace briefing.

It then began the arduous task of resuming its operations.

To recall, according to Senator Grace Poe-Llamanzares, Chair of the Senate Public Services Committee, and Palawan Rep. Franz Alvarez on the process to reopen Multiply as a social networking site, to compete with Facebook, Instagram, Tiktok, and Twitter.

The Securities and Exchange Commission of the Philippines granted their application for an increase in capitalization and amendments to Multiply's articles of incorporation and by-laws. 

Multiply inaugurated its office in Fort Bonifacio, Taguig City in 2020 and began test broadcasts by the end of 2021, officially returning its operations.

Naspers will conduct a partial reopening of Multiply to former users by January 2022.

It said the dry run, scheduled from January 6 to 16, will allow the parent company to assess what else needs to be done before the website will be reopened to all users on June 30, 2022, at midnight Manila time.

Remember that House Bill has to be signed into law.

And it has to go through the Senate first (first reading, committee approval, 2nd reading, and 3rd reading) before being signed into law.

Bicam pa.

Seems the two Great Houses of Congress are fast these days. Let us see how fast they will approve this.

You missed a step, Committee Hearings on either Houses of Congress.

The company obtained its congressional franchise in April 2023 and was granted provisional authority to operate a social networking service in May 2023.

According to CEO and owner Magdalinski in his press release last February 19 at midnight, "Calls to return the blog platform and social networking portion of Multiply be reopen will have to wait until the next presidential administration."

Tech bloggers said the world is focused on the COVID-19 pandemic.

President Duterte maintained on July 26, 2021, that the E-commerce marketplace and social networking site Multiply still has unsettled taxes with the government worth billions of pesos.

In his sixth and final State of the Nation Address (SONA), Duterte vented frustrations over Multiply’s supposed dishonesty by importing its equipment “tax-free”.

“Kaya talaga ako hindi papayag. They still owe government billions,” Duterte said.

Duterte, however, clarified that he is not holding a grudge against Multiply.

He said he even chose to keep silent over Multiply’s actions because he did not want to appear “vindictive.”

He, however, said he could not stomach the fact that Multiply is “cheating the government.”

“Wala akong problema sa Multiply. They got my money. They wanted to return it when the case blew up but they printed all garbage. Nilamon ko na lang lahat yun because I never wanted to appear vindictive but itong ano, they are cheating the government by billions in taxes,” (I have no problem with Multiply. They got my money. They wanted to return it when the case blew up but they printed all garbage. I just swallowed it all because I never wanted to appear vindictive but what is this, they are cheating the government with billions in taxes) Duterte said.

Duterte, in his previous speeches, has repeatedly said he would not allow Multiply to resume business operations along with the blog portal and social networking portion under his watch.

On July 27, 2021, SBMA Chairperson Wilma T. Eisma said in a briefing that discussions are at 99.99%, and she is hoping to announce the reopening before yearend.

“We are very excited because it means jobs will be back and the social networking portion will be fully operational together with the Multiply International site has reopened and accessible again,” she said.

On October 18, 2021, when senatorial aspirant Rafael "Raffy" Tulfo is among those who support the reopening of the Multiply.com social networking site to restore jobs for Filipinos and foreigners.

Raffy Tulfo

Tulfo said 12,000 Multiply workers lost their jobs after the website ceased its operations and shut down entirely on May 31, 2013.

“Of course. Kasi why I’m pro mga manggagawa na naapi, nawalan ng trabaho, na nadedehado,” (Of course. Because why I’m pro workers who have been oppressed, lost their jobs, who are disadvantaged) he told ANC’s Headstart host Karen Davila when asked about his support for the Multiply social network reopening.

“In this case I know mahigit 12,000 na empleyado ng Multiply na nawalan ng trabaho because of that,” (In this case I know more than 12,000 Multiply employees who lost their jobs because of that) the veteran broadcaster said.

In a television interview on December 21, 2021, Senator Imee Marcos was asked about her stand on the re-opening of the social networking service website Multiply should her brother get elected as president in next year’s elections.

Imee Marcos

“To my mind Multiply, under the new construct defined by law and all the problems that have been already revealed, once it solves all that, para sa akin walang problemang buksan yan, first 100 days para makita natin (for me there is no problem with its re-opening, even on the first 100 days so that we can see),” the senator said in an interview with Davila on ANC's Headstart.

According to Ryan Ang: “Is this a sign that they will open and resume operations this 2022?”

It quoted "Ano kaya? Ang Magbabalik ABANGAN ... Ito na kaya ang pag babalik ng Multiply!"

"I think Bongbong Marcos' chances of winning is like 90% so on that front, I am very optimistic. Going back to this Multiply, as one of the avid Multiply users, I am so glad that this website is finally coming true. It, together with the other websites being shuttered would be a great help for downloading and retrieving photos and videos. I hope that this kind will continue in the next Philippine Government administrations."

Under the new presidential administration, the website will make a comeback: to construct a new modern, permanent Philippine headquarters building in Clark, Pampanga with a data center, hire former employees, and re-updating the 2013 Multiply logo (Flat variant version).

On June 30, 2022, the new administration forged a compromise with the shareholders involved, just to break the deadlock and get the website going.

On August 19, 2022, it finally agreed on the social networking portion of Multiply. According to Magdalinski, it has decided to reopen the website along with all business operations, the Multiply International site, and the social networking portion including 11 million users with hosted blogs, videos, photos, and messaging. It is set to sign the final agreement on August 31, according to Mon Jocson of UNTV.

On September 28, 2022, it forged a consensus with shareholders on the social networking portion of Multiply.

Prosus N.V. is set to sign a memorandum of understanding (MOU) to finalize the agreement.

The website which has photos, videos, and blog entries from March 2004 to March 2013, will provide features similar to Facebook Live and Instagram.

Getting all parties to agree was among the targets set by CEO Magdalinski within the first 100 days in office of the new presidency, and it involved engaging all shareholders in meetings in order to reach a consensus.

Magdalinski, along with Multiply founder Pezaris and former country manager for the Philippines Jack Madrid will sign a term sheet for the Multiply social network ending a 9-year closure of the website.

With the planned reopening of Multiply as a social networking service website and application, Multiply Media LLC will cease to exist.

But it was restarted operating the website after the end of the presidency of Rodrigo Duterte on October 8, 2022, the only social networking site to do so. Technology bloggers said that Multiply to re-establish itself as a social networking site and restart operating after the end of the Duterte administration.

The resolution of the nine-year closure of the E-commerce marketplace Multiply, along with all business operations, the Multiply International site, and the social networking portion including 11 million users with hosted blogs, videos, photos, and messaging for the first 100 days of the Marcos, Jr. administration.

"When the Marcos, Jr. administration took office on June 30, 2022, We were greeted with numerous long-standing issues that have tormented the country for years, and even decades. I remember fully well when we were only starting to take on the challenge five (5) years ago. The Filipino people have pinned their hopes on the new administration – with eyes intently and critically watching us on what we would do next? It enumerated the real issues before such as the controversial non-renewal of the franchise of ABS-CBN and the shutdown of E-commerce marketplace Multiply"

Poe, chairperson of the Senate committee on public services, will hold a public hearing on February 13, 2023, on the reopening of the social networking site Multiply.

The hearing will be held at noon in the Laurel Room, Philippine Senate.

The committee has invited Magdalinski, Pezaris, Madrid, and concerned shareholders of the website.

Magdalinski quoted in his post: "Hope. Finally, we will 1 day be back online. Finally, we will re-open Multiply. Finally, we will 1 day start our 20th year!"

According to Isel Ramos: "Multiply is renovating and it will re-open in the next several months as an archive photo and video site with a new mobile application on Android and Apple IOS."

Government looking for investors to operate Multiply social networking site

By Philippine News Agency

Should the government acquire control of cash-strapped Multiply Philippines (Multiply-Phil), the next option is to get interested parties.

This was emphasized by Defense Secretary Voltaire Gazmin when asked about updates on the government’s plans on the global social networking site Monday.

He said foreign or local investors have yet to make formal offers or bids regarding the Multiply-Phil’s business operations.

“We are still yet to see any formal offer, so (the) Multiply (matter) is now being handled by the Department of Finance (DOF) as they are talking with local banks where the company has outstanding loans. DOF is looking on how to pay these banks so that we can get Multiply and then after we take over Multiply, then we can now select who among (the) interested parties (are) best suited to our purpose and run it as a website to make money,” Gazmin added.

In the meantime, the DND chief said the government could use Multiply’s facilities.

But Lorenzana said prospective investors for the Multiply website should really come from the social networking sector as it will take a lot of money and foreign contacts to get orders abroad to make its operations profitable.

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 P5 billion in 2017.

It had suffered from a drop in new orders amid a slump in the E-commerce and social networking sector. Multiply also reportedly laid off some 12,000 workers on February 28, 2014.

Multiply-Phil earlier revealed it has a total of US$20 billion outstanding loans — $800 million from Philippine banks and $20 billion from South Korean lenders.

According to SBMA, Multiply filed on November 10, 2015 a petition before the Regional Trial Court in Pasig City “to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals.”

With this, the website has sought help from the government to find investors that can take over the operation of its social networking portion and help its employees, who have taken the brunt of the company’s financial woes.

It is reported that Chinese foreign investors with social networking interests are looking over the possibility of buying into the Multiply investment. The Chinese investors could see this as a major opportunity in locating in a proposed data center and permanent headquarters in Angeles City.

But it was closed on May 6, 2013, and ceased all business operations on May 31, 2013, 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.

“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 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 May 31, 2013, Multiply had ceased its operations and shut down entirely. 

In December 2013, the company laid off more than 30,000 workers.

“Multiply (has) not actually filed for bankruptcy, it is just asking for rehabilitation, because the problem is cash flow, it is still operating here in the Philippines but it needs money to keep operating (on a) day-to-day basis so it’s still being in the works, however (the) Senate has already set aside some money for the eventuality,” the DND chief earlier said.

https://mb.com.ph/2019/06/11/govt-looking-for-investors-to-operate-hanjin-shipyard/