Export Bank bidding fails as court issues TRO

Posted at 10/18/2012 3:11 PM | Updated as of 10/18/2012 4:55 PM

MANILA, Philippines (UPDATE) - The bidding of closed Export and Industry Bank suffered a temporary setback, after a local court issued a restraining order on the auction proceedings.

The Makati Regional Trial court slapped a 72-hour temporary restraining order against the auction. 

Speaking to ANC, Philippine Deposit Insurance Corp. president Valentin Araneta said they are going to file an urgent motion to lift the TRO and to oppose a preliminary injunction, saying the court has no jurisdiction over PDIC. 

"The PDIC is going to file an urgent motion to reoslve, or lift the TRO right away and opposition to application for a preliminary injunction. The reason being that under our charter, only the Court of Appeals and SC in extreme urgency involving constitutional issues which has power to issue restraining order, injunctions against PDIC," Araneta said. 

The TRO stems from a case dating to the 1990s involving a subsidiary of Export Bank. 

The PDIC had scheduled on Thursday the auction for the first tranche which covers the purchase of assets and assumption of liabilities of EIB.

There were representatives of pre-qualified bidders present, but did not submit bids. 

PDIC is disposing of Export Bank after the bank surrendered to receivership earlier this year, after negotiations for a purchase by Banco de Oro fell through. - Report from Lois Calderon and Coco Alcuaz, ANC