Monday 22 October, 2018
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Court of Appeals

CA stops sale of Banco Filipino’s assets

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The Court of Appeals (CA) came up with an order stopping the auction, sale, disposal, and transfer of properties of Banco Filipino Savings and Mortgage Bank (Banco Filipino).

This as the CA granted the plea of the Banco Filipino’s stockholder, Ekistics Philippines, Inc., challenging an order of the Philippine Deposit Insurance Corporation (PDIC).

The CA said: “PDIC’s precipitate haste in attempting to sell the assets of Banco Filipino is tantamount to grave abuse of discretion.”

The appeals court noted that the bank’s receivership issue was still pending with the Supreme Court (SC).

“In the instant case, the status quo wherein the assets are not sold pending the ruling of the Supreme Court as to the validity of placing Banco Filipino under receivership is but safe and proper. Should it be otherwise and allow the sale even if the Supreme Court has yet to decide on its validity would render Banco Filipino without any asset and money if the Supreme Court later on rules that placing it under receivership was invalid.

“Respondent PDIC is hereby ORDERED TO DESIST from selling the assets of Banco Filipino covered under the liquidation proceeding before the Regional Trial Court of Makati City, Branch 66, pending FINAL DETERMINATION OF THE SUPREME COURT in G.R. No. 210249.”

Previously, another division of the CA stopped the Bangko Sentral ng Pilipinas (BSP) from disposing of the bank’s assets.#

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