March 22, 2000
PSE CIRCULAR FOR BROKERS NO. 739-00
March 20, 2000
Philippine Stock Exchange
Philippine Stock Exchange Centre
Exchange Road, Ortigas Center
Pasig City
Attention: Ms. Gracita de Guia
Listing and Disclosure Group
RE : MBf. Inc.
Gentlemen :
This is to inform you that the 9,600.000 shares (the "MBf Shares") of Grogram Limited in MBf. Inc. (the "Corporation"), which Grogram Ltd. pledged in favor of Unitrust Development Bank (UDB), were foreclosed in a public auction held on 07 December 1999. Likewise, the 459,995 shares (the "UDB Shares") of the Corporation in UDB, pledged by the Corporation in favor of the stockholders of UDB were foreclosed in a public auction dated 29 December 1999.
We did not disclose the foreclosure sale of MBf Shares and UDB Shares immediately thereafter because of a settlement proposal made by UDB the effect of which would undo said foreclosure. The proposal calls for the Corporation giving up its ownership in MBF Card Inc. in favor of UDB as full settlement of UDB's claims. The parties, however, failed to resolve what would be a fair consideration for the transfer of ownership....