|
FIRST
Abacus Financial Holdings Corp. will bid for the trading
rights of suspended stockbroker Asian Capital Equities
Inc. (ACEI).
In a
letter, First Abacus told the Philippine Stock Exchange
(PSE) it will submit a bit for the assets and rights of
ACEI on May 6.
Through
its market regulation division (MRD), the exchange is
overseeing the auction. The PSE said the trading rights
has floor price of P8.5 million. At the same time, the
MRD is putting on the block 50,000 PSE shares owned by
ACEI.
ACEI
collapsed in November 2003. The exchange has since
supervised its operations as mandated by the Securities
and Exchange Commission (SEC).
The MRD
said proceeds from the sale would be used to cover
claims of ACEI customers after its liabilities to the
exchange have been settled.
ACEI is
a joint venture partnership by Filipino investors—East
Asia Capital Corp., EA Securities Ltd. and MUI
Philippines Inc. Apart from being a broker-dealer the
company was registered with the Bangko Sentral ng
Pilipinas as a nonbank financial intermediary with
nonquasi-banking functions.
Francisco Borromeo, who is wanted in connection with
criminal cases filed against him for various violations
of the Securities Regulation Code (SRC), headed the
firm.
In 2007,
the PSE sought public help on the whereabouts of
Borromeo, who had arrest warrants under his name—issued
by the Makati City Regional Trial Court—on seven counts
of violating securities laws. The charges were connected
with the collapse of ACEI.
A joint
audit by the PSE and SEC in 2003, showed there were
anomalous deals and accounts that led to the financial
problem of the firm. Results of the audit were the basis
for the courts to issue arrest warrants against Borromeo.
The
collapse of ACEI prompted the SEC to issue a takeover
order five years ago and directed the exchange to assume
control of the company’s operations to protect the
interests of its customers. |
