Management Committee resolved at its
53rd meeting to arrange separate tender
sales of the CUTIC's Good Bank, the equity
in the Asia United Bank Corporation of
the Philippines, the Bad Bank (designated
NPLs), designated real estate, and the
Taipei Financial Center Corp. to meet the
market demand for different investors while
maximizinggains from the resolution.
The Bad Bank was sold by tender for
NT$2.73 billion. The Good Bank was
acquiredby theCathayUnitedBank and the
assumption was completed on December
29, 2007. The un-auctioned assets remained
under management by the CDIC as
conservator. The equity stake in the Asia
United Bank Corporation of the Philippines
was sold back to the Asia United Bank
Corporation of the Philippines on April 17,
2008, forNT$967.2million.Thedesignated real estatewas fullydisposedbyMarch2014.
VIII. Bowa Commercial Bank (Bowa Bank)
During the resolution of the Bowa Bank, the CDIC was concurrently serving as conservator
for four financial institution—the EBH, the TBB, the CUTIC, and the Chinese Bank, leaving it
constrained by a shortage of manpower. According to Article 62-3 of the
Banking Act
, the
CDIC therefore requested authorization from the competent authority to entrust the Land Bank
of Taiwan to operate andmanage the bank's business and property. The auction strategy for
the Bowa Bank was to first deduct retained items and then separate the assets/liabilities and
operations into twomajor auctions of theGoodBank and the BadBank. The BadBankwas split
intoTrancheA andTrancheB. TrancheA consistedof corporate loans,mortgage and auto loans,
consumer loans, and other general NPLs alongwith some fixed assets not for self-use, assumed
collateral, and road-use land. Tranche B consisted of credit cards, cash cards,micro-credit loans,
andotherNPLs.
49
ReviewandOutlook
