Sale of BALBOA BANK & TRUST CORP (Reorganization Process Update).
By official announcement (Resolution SBP-0198-2016) dated on October 27, 2016 the Superintendence of Banks in Panama ordered an extension for the reorganization of the bank which must be completed within the ninety (90) day period, which may be anticipated or extended, based on a motivated request of the reorganizer, as provided in numeral 3 of article 142 of the Panamanian Banking Law.
This measure becomes effective as of Tuesday, November 1, 2016 starting at 2:30 p.m.
As we published on our previous news, the main objective of the Superintendence is to put the bank for sale.
For the Sale of Balboa Bank the Superintendence invited all the Panamanian Banks with General License and International License to participate in the Balboa Bank & Trust, Corp. sale process.
So far 11 local banking groups and 2 foreign has confirmed their interest in the sale of Balboa Bank process.
After these expressions of interest and the corresponding agreements of confidentiality and security of the process, the sale process must enter into a phase of Due Diligence, where the banking groups will carry out the financial valuation of Balboa Bank & Trust, Corp. to formulate its proposals.
Typically this process is followed by the phases of the evaluation and negotiation of the offers submitted by the banks concerned, then the formalization of the transaction and the consequent completion of the sale.
In the same Resolution the Superintendence manifested that they positively valued the process so far, as the Reorganization of Balboa Bank will comply with the following main objectives of the Superintendence:
- Protect the best interests of depositors
- Minimize any loss of value of the bank that is detrimental to the depositors
- Reduce any adverse impact on the Banking System