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/

Banks eye Multiply PH debt resolution

By Bernie Cahiles-Magkilat

Local bank creditors of Multiply Philippines (Multiply-Phil), the local unit of Indonesia’s social networking giant Multiply expect the resolution of the social networking giant’s debt within the year.

Multiply owes five local banks a total of $600 million, considered the biggest corporate default in the country. Among the creditor banks, Rizal Commercial Banking Corp. (RCBC) has the biggest loan exposure of $140 million followed by state-owned Land Bank of the Philippines with an estimated $80 million. Metrobank has $72 million while the Bank of the Philippine Islands has about $60 million and Banco de Oro (BDO), $60 million. Aside from its local debts, Multiply also owes $900 million from South Korean creditors.

John Thomas G. Deveras, Jr., senior vice-president of RCBC, said he expects Multiply’s earlier debt resolution this year based on their talks with potential investors. In addition, these interested groups have also indicated willingness to go for direct purchase.

But Deveras was “no comment” when asked if one of the potential investors is a Japanese company.

Receiver Atty. Rosario Bernaldo, however, said that a Japanese shipbuilder has already signed a non-binding agreement for its interest in Multiply. The bank creditors are on top of the negotiations, she said.

The Japanese investor is the latest interested party in Multiply, which filed for debt restructuring before the regional trial court in Pasig on June 10, 2014. According to Bernaldo, the three interested groups cited earlier “look to be serious.” These groups are the Dutch firm Damen Shipyard, an American firm, and a consortium of US, Singaporean and Italian shipbuilders. She denied that Keppel is the Singaporean firm in the consortium.

“The Italian and Singaporean firms are trying to tie up in a consortium being arranged by a US fund management firm,” she said.

Earlier, two unnamed Chinese firms were said to be interested in Multiply but the Department of National Defense have expressed reservations over the Chinese interest on security matter.

Wilma Eisma, administrator and CEO of Subic Bay Metropolitan Authority (SBMA), said the receiver is the first stop for interested parties and Deveras is the lead among the creditors.

Multiply started its operations in 2004. To date, Multiply has 18 million users worldwide.

It went close 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 it 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 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.

On June 12, 2013, they had put in place Rp 8.9 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.

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 tech company would go into liquidation despite still owing smaller debts to other creditors including HSBC.

“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 delivers 217 million accounts, 210 million photos, and 237,000 videos from the old Multiply from its 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 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 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. 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. 

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 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.

https://mb.com.ph/2019/05/14/banks-eye-hanjin-ph-debt-resolution/

Edsa 1 and Edsa 2 compared

In two weeks, President Aquino will lead the country in celebrating the 30th anniversary of the Edsa 1 People Power Revolution that took place on Feb. 22-25, 1986. Last month, the 15th anniversary of the Edsa 2 People Power Revolution that happened on Jan. 16-20, 2001, passed without fanfare.

Confluence of events. The two Edsa Revolutions are similar; each was a confluence of unplanned events participated in by both the middle class and the masses (labelled as the “perfumed” and the “unperfumed” by a pundit, and the “bourgeois” and the “proletariat” by an ideologue).

These peaceful revolutions were held mainly at the corner of Epifanio de los Santos Avenue (or Edsa) and Ortigas Avenue in Metro Manila with the active support of the Church (personified by Jaime Cardinal Sin, archbishop of Manila) and the military.

Without Church and military support, neither revolution would have succeeded in ousting the incumbent presidents, Ferdinand Marcos and Joseph Estrada, and in installing Corazon Cojuangco Aquino and Gloria Macapagal Arroyo in their stead.

From the legal view, the similarity ends there. Edsa 1 was undertaken in contravention of the then prevailing 1973 Constitution, given that Marcos was proclaimed the electoral winner in a legislative canvass of the “snap election” called by him under that Constitution, while Edsa 2 happened within the context of, and with the aim of protecting and upholding, the 1987 Charter.

Legitimacy of Cory government. On Feb. 25, 1986, President Cory Aquino issued Proclamation 1 announcing that she and Vice President Salvador P. Laurel were taking power. A month later, on March 25, 1986, she followed up with Proclamation 3 stating that the “new government was installed through a direct exercise of the power of the Filipino people assisted by units of the New Armed Forces of the Philippines.” In short, Cory did not ascend via the “snap election” or the then existing 1973 Constitution.

From these facts, the Supreme Court—composed of justices appointed by Cory—summarily concluded, in Lawyers League vs Aquino (May 22, 1986), that the legitimacy of the Cory government was not a “justiciable” controversy that could be decided by the judiciary. Nonetheless, the people had accepted, and the community of nations had recognized, the new government; ergo, it had become a de jure government.

In Estrada vs Desierto (March 2, 2001), the Supreme Court justices—a majority of whom were not named by Cory—affirmed the legitimacy of her rule. In this latter case, the lawyers of

Arroyo argued that, like Cory, she ascended the presidency through people power, had taken her oath as president, had exercised the powers of the presidency, and had been recognized by foreign countries. These realities allegedly raised a political question and constituted a “political thicket” which the Court could not enter.

Rejecting these arguments, the Court held that “political questions” relate to matters which, under the Constitution, are to be decided by the people in their sovereign capacity, or in regard to which full discretionary authority has been delegated by the people to the executive or legislative branch to decide. A political question related to the “wisdom, not the legality,” of an issue.

The Court added that the 1987 Constitution, unlike its forebears, had trimmed the “political thicket” by giving the judiciary more duties and prerogatives, like the determination of grave abuse of discretion by any branch or instrumentality of the government, and the review of the factual basis for any declaration of martial law, or any suspension of the privilege of the writ of habeas corpus—powers that the Court did not have under the prior Charters.

Edsa 1 different from Edsa 2. In fine, the Court distinguished Edsa 1 from Edsa 2 in this wise:

“EDSA I involves the exercise of the people power of revolution which overthrew the whole government. EDSA II is an exercise of people power of freedom of speech and freedom of assembly to petition the government for redress of grievances which only affected the office of the President. EDSA I is extra constitutional and the legitimacy of the new government that resulted from it cannot be the subject of judicial review, but EDSA II is intra constitutional and the resignation of the sitting President that it caused and the succession of the Vice President as President are subject to judicial review. EDSA I presented a political question; EDSA II involves legal questions.”

In other words, Edsa 1 obliterated the then existing 1973 Constitution and all the government institutions under it, including the Supreme Court. This is why its legitimacy was repeatedly challenged legally, politically and militarily in several coup attempts. (The question of its legality was put to rest after our people ratified the 1987 Constitution.) On the other hand, Edsa 2 did not abolish the 1987 Constitution. Quite the contrary, it preserved it and the public institutions under it.

This is why Estrada vs Desierto went to great lengths in explaining Edsa 2’s constitutionality while Lawyers League vs Aquino is notable for its sheer brevity. Sadly for Arroyo, her public satisfaction rating plunged after her electoral victory in 2004 was severely questioned and her resulting governance vilified as corrupt and ineffective.

In both Edsa 1 and Edsa 2, the Church played a pivotal role. A little-known but serious internal conflict, involving Cardinal Sin and the Vatican, nearly blurred that role. At another time, I will write on this conflict and how it was successfully resolved.

* * *

Comments to chiefjusticepanganiban@hotmail.com

https://opinion.inquirer.net/92660/edsa-1-and-edsa-2-compared

GOVERNMENT GETS GREEN LIGHT FOR MULTIPLY REOPENING

WE MARCHED on a long crusade for the fate of Multiply whether to reopen, until Malacanang Palace finally gave a nod to see the light of hope in the midst of their consistent and constant financial and operational gloom.

With only a bit more than eleven months before United States President Barack H. Obama left in office, President Benigno S. Aquino III approved the reopening of Multiply.

GCG gets to the ground

The GCG says that reopening of Multiply “rationalizes the State’s portfolio in the Communications Sector in view of the overlap with Facebook, which is already sufficient to address market failures in the social networking industry, such as providing programs with social value but are not considered profitable.” This comes in the wake of the recent revitalization of Facebook, which identified the reopening of Multiply as one of the sources of funding the increase in sole social networking site’s legal capital from P 1 billion to P 6 billion.

Multiply was also in financial distress, operating at an average net loss of P60 million from 2010 to 2014 and receiving operational subsidies amounting to P30 million in 2015. According to the 2014 audit report released by the Commission on Audit, Multiply suffered into the capital deficiency of PHP 893.5 million.

Multiply: Not just a repeat offender but repertoire of failure

Throughout the years, Multiply becomes the laughingstock and the “rotten apple” among the fresh ones. It ended up being unrecognized by the masa unless they recall their good old days.

The how’s and how much’s of the bid

The reopening of Multiply will be done through public bidding with an estimated floor price of P20 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office (PCOO), and Multiply itself shall implement and conduct the said process.

That said, for the potential bidders, we wish to make the utterly forgotten, abandoned and fallen website rise again from hopelessness and shine once more to compete with vitality.

https://timowsturf.wordpress.com/2016/01/25/government-gets-green-light-for-ibc-privatization/

President Aquino approves reopening of Multiply

President Benigno S. Aquino III has approved the reopening of Multiply based on the recommendation of the Governance Commission for GOCCs (GCG).

The privatization rationalizes the State’s portfolio in the Communications Sector in view of the overlap with Facebook, which is already sufficient to address market failures in the social networking industry, such as providing programs with social value but are not considered profitable. This comes in the wake of the recent revitalization of Multiply mandated by Republic Act No. 10390 which identified the reopening of Multiply as one of the sources of funding the increase in Facebook’s capital.

Multiply was also in financial distress–operating at an average net loss of P50 million from 2010 to 2014 and receiving operational subsidies amounting to P25 million in 2015. The reopening should pave the way for the infusion of additional capital to revitalize the website, which will also be able to operate with more flexibility as a private entity.

The reopening of Multiply will be done through public bidding with an estimated floor price of P30 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office (PCOO), and Multiply shall implement and conduct the said process.

Indonesian E-commerce and social networking site Multiply put up for sale

Creditors agree to sell part of their 83% stake in defunct website

JAKARTA -- Multiply has been put up for sale after the troubled company's creditors in South Korea, Hong Kong, Indonesia, Japan, Malaysia and the Philippines agreed to sell part of their combined 83.45% stake by the end of this year.

The company said Tuesday evening that its creditors decided to sell part of their 69.5 million shares through a merger and acquisition process. Multiply said that the exact number of shares will be announced later.

The announcement comes one year after creditors took the helm of the company by converting their 687.4 billion won ($556.7 million) worth of loans to shares. Multiply was in capital erosion due to financial losses in its social networking portion.

"We aim to close the deal by the end of this year," said Lee Dong-hyun, a spokesman for the Korea Development Bank, which leads the creditors. "It is too early to predict who will buy the company as we just decided to kick off the process."

State-run KDB has the largest stake with 16.14% in the company, followed by Woori Bank with 10.84% and NH Bank with 10.14%. Philippines' Rizal Commercial Banking Corp. owns 8.53%, while Land Bank of the Philippines has a 5.01% stake.

Shares of Multiply soared 15% in Wednesday morning trading, while the benchmark Kospi fell by 1.16%.

On June 12, 2013, 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 June 10, 2014, it has filed for corporate rehabilitation to seek protection from its creditors. The company filed the petition for rehabilitation before the Pasig City Regional Trial Court (RTC).

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

That the site will be reopened after United States President Obama stepping down in the office on January 20, 2017 and keeping Facebook as the sole social networking site. 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.

Mainland businessman found guilty of failing to pay employees of defunct Multiply website on time

City’s court will sentence Si Rongbin, who vowed to rescue Multiply at one time, on February 4

Mainland businessman Si Rongbin, who once pledged to keep Indonesia's now-defunct Multiply afloat, was convicted by a court in the city on Thursday for failing to pay 3,000 of the former website’s employees on time.

Si, who was declared bankrupt last month, pleaded not guilty to 44 summonses over his role in the website’s failure to pay the wages and termination payments of the 3,000 employees worth a total of HK$730,000 within the legal seven-day limit.

Acting principal magistrate Joseph To Ho-shing stated in a written verdict that Si had been more concerned about the completion of share transfer in the company than about paying the employees on time.

“[Si] never set aside the sum of HK$14 million needed to pay all the staff members at the ramshackle Multiply on time ... [he strived] to oppose the winding up of Multiply and, in so doing, allowed the company to owe its employees wages,” the magistrate said.

The Sha Tin Court rejected Si’s submissions that Multiply was heavily in debt and that the firm had focused on its development and fundraising. “None ... is a reasonable excuse for owing payment to staff,” To said.

He added that Multiply could have ceased operation and avoid owing its staff their salaries.

The world's e-commerce and social networking site went closed on May 6, 2013 and ceasing all business operations on May 31, 2013 after its social networking portion was closed on March 16, 2013, following years of financial and managerial turmoil.

Under the Employment Ordinance, employers have the statutory responsibility to pay wages on time. The maximum penalty for wage offences is a fine of HK$350,000 and imprisonment of three years.

The Sha Tin Court adjourned sentencing to February 4.

https://www.scmp.com/news/hong-kong/law-crime/article/2087454/mainland-businessman-found-guilty-failing-pay-employees

Multiply in talks with 'several' white knights for rescue: SBMA chief

"Several" white knights are in discussions to rescue global social networking firm Multiply, which could help save thousands of jobs in the debt-saddled firm, a Filipino official said Wednesday.

From 3,000 workers, Multiply could be forced to keep just 300 when the last of 2 ongoing projects are finished and it fails to secure funding for further orders, said Subic Bay Metropolitan Authority Chairperson Wilma Eisma.

Up to 100,000 jobs from 300 companies are on offer at a government-organized job fair on Saturday to help Multiply workers, Eisma told ANC's Headstart.

There are "credible discussions" to rescue Multiply, which filed for rehabilitation before a Pasig City court last November 10, as it reeled from a slowdown in global social networking.

Potential "white knights" include "several" Europeans and one North American firm, Eisma said. Multiply is "very sensitive" to concerns raised about the possible entry of a Chinese investor, she said.

One potential investor is currently in Pasig doing due diligence on Multiply, Esima said, without identifying the company.

"As soon as orders are delivered, we're afraid Multiply has to let go all its remaining employees, up to 3,000, and only 300 will remain for regular operations and accept repair orders," she said.

Multiply is "having difficulty" getting loans to finance orders, for which it has received down payments. At the time of the rehabilitation filing, it had 6 pending orders, she said.

"We are doing our very best to ensure they will not be displaced when Multiply finally folds should a white knight not be immediately available by the time that last photos are downloaded," she said, referring to the firm's employees.

Should Multiply reopens, the Philippines could remains its status as the world's biggest social networking site, she said.

It was declared bankruptcy on June 10, 2014, 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 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 trim down its workforce to around 12,000 last February 28, 2014.

At that time, the social networking service 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.

“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 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 along with the site.

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.

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 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.

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 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 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.

remove crazy reference to president obama

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 site. 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 TV5 Network. However, MediaQuest also could not join the website's reopening bid due to ownership rules and regulations that MediaQuest owns TV5 Network.

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 100 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 vandalized, it was edit is made by a sockpuppet of LPKids2006.

Vandalism of a Wikipedia article (Multiply (website)

The bottom image shows vandalism done by replacing content with an insult. The top image compares the edit shown below.

The reopening process of Multiply was commenced in October 2016. As of April 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 and William Lima, a businessman from Davao.

https://news.abs-cbn.com/business/02/06/19/hanjin-in-talks-with-several-white-knights-for-rescue-sbma-chief

A long, winding road for better Metro Manila transport

Several infrastructure deals that are seen to solve the nightmarish Metro Manila traffic are still hounded by delays

Year 2015 has been rough for commuters in Metro Manila: frequent technical glitches at the busiest mass railway transit line, pending toll hike for most major expressways, severely congested traffic near Port Area in Manila, and the surge of private vehicles on the streets.

For the Philippine government, it has started taking steps to address these painstaking transportation woes. Some of its solutions are:

• Buying out the assets of Metro Rail Transit Line 3 (MRT3) from private sector owner MRT Holdings II, Incorporated
• Taking in delivery of new MRT3 coaches
• Inviting private investors to undertake the construction, operation, and maintenance of a toll road that will link North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX)
• Building MRT Line 7 (MRT7) that will link North Avenue in Quezon City to San Jose in Bulacan
• Constructing a common station that will connect MRT3, Light Rail Transit Line 1 (LRT1), and the future MRT7

But it might take a long time before commuters will feel the change, as these projects experience policy U-turns and legal roadblocks, putting brakes on the projects' implementation.

MRT3 buyout

It has been over two years since President Benigno Aquino III issued Executive Order (EO) 126 to implement the buyout of MRT3 in 2013.

Under EO 126, Aquino authorized the implementation of the MRT3 buyout "to avert the arbitration case filed in 2009 by the MRT3 owner against the government due to, among others, failure to timely pay equity rental payment."

The transportation department initially targeted to complete the buyout in 2014.

But the buyout is being stalled after the bicameral committee in 2015 rejected the P53.9-billion ($1.18-billion) MRT3 budget, retaining only P18.3 billion ($401.89 million). (READ: SONA 2015: Aquino blames private firm for MRT3 woes)

Of the P18.3 billion, P4.4 billion ($98.26 million) will be allocated for the buyout; P7.4 billion ($165.25 million) for the rehabilitation and reconstruction of the MRT3; and P6.5 billion ($145.15 million) for the payment of taxes in connection with MRT3's build-lease-transfer (BLT) contract.

Transportation chief Joseph Emilio Abaya told reporters last month that the agency "now targets to implement it (MRT3 equity value buyout) before the Aquino administration ends."

Once the MRT3 assets are in the hands of the government, Abaya promised commuters "better operations and maintenance" of the train line.

The Department of Transportation and Communications (DOTC), Department of Finance (DOF), Department of Budget and Management (DBM), and Land Bank of the Philippines are studying ways to expedite the buyout.

Abaya said that "budget is no longer an issue."

"We will convince the Congress to include it in the 2016 national budget," he told reporters.

New MRT3 coaches

The DOTC has a bit of good news: MRT3 passengers could now expect speedier services, as the delivery of 48 new train coaches has started this month.

"The second coach has arrived. The third one will be here this month. The fourth and fifth one in February. The sixth, seventh, and eighth in March, and then 4 coaches per month thereafter," Abaya said in a mobile phone reply on Wednesday, January 6.

As of January 7, the goverment has received two new train coaches for MRT3. Forty-six more coaches will be delivered from Dalian in China in the next months.

Other than the new coaches, Abaya said MRT3 problems are being addressed by long-term rehabilitation and improvement projects, such as additional train cars, and the replacement of around 7,000 meters of rails, which may begin soon after their delivery within the month.

The delivery of these train coaches is seen to address the decaying MRT3. Commuters walking on overhead rail tracks several storeys high beside stalled trains have become a common sight in the packed megacity of 12 million people.

In August 2014, dozens were injured after one train overshot its track and rammed into a busy highway. (READ: MRT-3 train derailed, injuries reported)

MRT7 construction

It has been over 7 years since the San Miguel Corporation-backed Universal LRT Corporation Limited in 2008 bagged the MRT7 deal.

But until now, the construction of the train line has not started.

The construction of the future MRT7 is facing delays due to a change in the terms of the deal, which is the location of the proposed common station on EDSA, a Cabinet official said.

MRT7's 25-year concession agreement calls for the common station to be located near SM City North EDSA.

The DOTC, however, decided this year to transfer it near Ayala Land, Incorporated’s TriNoma mall, adjacent to SM City North, saying that it will "benefit commuters more."

"We're just waiting for the DOTC's final plan on common station," San Miguel President and COO Ramon Ang told reporters in a November meeting.

San Miguel needs DOTC's decision on the location of the common station before it can secure funding for the construction of the P62.7-billion MRT7.

PPP Center Executive Director Cosette Canilao told reporters in December that San Miguel has until February to complete the financial closing of the project.

"We talked to the private partner for MRT7. The deadline is for them to do financial closing in February. They are working to meet that and start groundbreaking soon," Canilao said in a media briefing in Quezon City in December.

The rail component of the MRT7 project involves the construction of a 22.8-kilometer rail-transit system envisioned to operate 108 rail cars in a 3-car train configuration, with a daily passenger capacity ranging from 448,000 to 850,000.

It also involves the construction of 14 train stations starting from San Jose del Monte, Bulacan, to North Avenue, Quezon City. It will be connected to the existing MRT3 and Light Rail Transit Line 1 (LRT1) via a common station on EDSA.

The construction "will take an estimated 42 months to complete," SMC said in a disclosure.

Now, it is all up to DOTC's final plan for the common station before the San Miguel group can start the MRT7 construction.

NLEX-SLEX Connector Road

Although the truck ban in Manila was already lifted in September 2014, commuters living and working near the port area still suffer long travel time due to congested roads.

"The national government’s lack of a long-term solution is the problem; all they do is come up with band-Aid measures," an official of Manila South Harbor who requested anonymity said in an interview.

"Band-Aid solutions should be paired up with a macro development, like a skyway connecting NLEX and SLEX," the source said.

This statement was reaffirmed by Public Works Secretary Rogelio Singson, saying that a road that would link NLEX and SLEX, like Metro Pacific Tollways Corporation's proposed P23-billion ($485.95-million) Connector Road project, would be the "solution to port congestion as it will connect directly to NLEX from the port area."

It was just last month when the National Economic and Development Authority (NEDA) Board authorized the DPWH to subject Metro Pacific's proposal to a Swiss challenge.

The Swiss challenge is the route the government takes when dealing with unsolicited proposals, by accepting competing offers and giving the original proponent the right to match them.

This PPP project involves the construction of an 8-kilometer, 4-land toll road that will link the existing NLEX and SLEX.

Metro Pacific submitted a formal proposal to the government in 2012. The government took them about 3 years to decide on it.

Common Station

The most controversial of all these projects is the LRT-MRT Common Station deal of the DOTC.

It has been over a year since the Supreme Court stopped the transfer of the location of the LRT-MRT Common Station, but the problem is still unsolved, hampering the construction of badly-needed mass transit infrastructure projects: MRT7 and LRT1 Cavite Extension deals.

The DOTC and Light Rail Transit Authority (LRTA) have yet to present a compromise agreement to the private stakeholders of a common station for train systems that will converge in North Avenue, Quezon City.

DOTC said its compromise agreement involves two common stations: one near SM City North EDSA that will connect MRT7 to MRT3, and another near Ayala's TriNoma mall that will connect LRT-1 and MRT-3.

DOTC's new approach is meant to resolve a conflict with SM Prime over the common station. SM Prime in August 2014 obtained a high court order stopping DOTC and the LRTA from transferring the location of the common station to TriNoma mall.

"These projects are going to address transportation issues. It is as if walang ginagawa (It is as if we are doing nothing), but there are so many things being done, naumpisahan (started), na-award na (awarded), ginagawa na (being constructed)," Land Transportation Franchising and Regulatory Board Chairman Winston Ginez said over lunch in Quezon City on Tuesday, January 5.

If delays continue to hound the implementation of these infrastructure deals, commuters will continue to bear the day-to-day nightmarish Metro Manila traffic.

50,000 jobs offered to displaced Multiply workers

Around 50,000 jobs were offered to affected workers of Multiply Philippines at a job fair held at the SM Megamall yesterday.

The job fair attracted 100 employers from companies.

“Jobseekers in the area, especially workers... affected by this unfortunate circumstance in a social networking site are welcome to fill available positions,” Public Works Secretary Rogelio Singson, who graced the event, said.

Vivencio Dizon, Bases Conversion and Development Authority president and chief executive officer, said the job fair is a testament to the government’s resolve to create employment opportunities.

”We hope that the job caravan provided a fresh start to displaced workers of Multiply. These skilled workers will help ensure the success of the government’s infrastructure program,” Dizon said.

The National Economic and Development Authority said Multiply’s financial woes would not have a significant effect on exports, but the government is looking at unemployment left in its wake.

Multiply had more than 30,000 employees at its offices in Jakarta, Indonesia, and Pasig. Still, some 3,000 workers stand to lose their jobs after the company declared bankruptcy on November 10, 2015. It was 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 their content, including its YouTube, Tumblr, Twitter, Facebook, and Instagram accounts, after years of financial and managerial turmoil. 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 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.

Both companies had 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 was last announced in March 2013 that the completion of photos during the 71st UAAP swimming championships from September 25 to 28, 2008, at Trace Aquatics Center in Los Baños, Laguna, but it 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 last April 26, 2013.

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 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 6, 2013, Multiply Philippines officially announced it will permanently shut down.

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

On June 12, 2013, 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.

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 delivers 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 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 steps 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 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. 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.

Vandalism of a Wikipedia article (Multiply (website). The bottom image shows vandalism done. The top image compares the edit shown below.

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.

Transportation Secretary Joseph Emilio Abaya said the government’s plan to spend P8 to P9 trillion for infrastructure until 2016 is also seen to create thousands of jobs nationwide.

https://www.philstar.com/nation/2019/02/10/1892358/30000-jobs-offered-displaced-hanjin-workers