The Makati Regional Trial Court (RTC) has lifted the writ of preliminary attachment and garnishment on some LBC Development Corp. (LBCDC) and LBC Express, Inc bank accounts.
The writ was granted earlier after Philippine Deposit Insurance Corp. (PDIC), on behalf of shuttered LBC Development Bank, sued LBCDC and LBC Express as well as several other defendants, claiming they owed the bank nearly P2 billion in unpaid service fees.
In a disclosure to the Philippine Stock Exchange, LBC Express Holdings, Inc. (LBCEHI) said it was advised of the Makati RTC issuance of the order dated February 17, 2016 in relation to Civil Case No. 15-1258 to lift the writ of preliminary attachment issued on December 7, 2015 and the garnishment made.
The lifting of garnishment covers accounts on the following banks: Landbank of the Philippines, BDO Unibank, Inc., Metropolitan Bank and Trust Company, Bank of the Philippine Islands, Rizal Commercial Banking Corporation, and Philippine National Bank.
The counter-bond delivered by LBCDC and LBC Express will “stand in place of the properties so released and shall serve as security to satisfy any final judgment in the case,” LBCEHI said.
Last January, LBCDC and LBC Express had, along with filing a motion to dismiss the case, posted a counter-bond with the courts.
In an earlier disclosure, LBCEHI said the two firms would be taking action to lift the writ of attachment “as well as to hold PDIC liable for any damages suffered by the respondents by virtue of the enforcement of such writ.”
In a letter to the Securities and Exchange Commission, LBC’s holding arm reiterated that in the short term, “the garnishment of LBC Express’ bank accounts has given rise to administrative challenges particularly in the manner by which LBC Express, Inc. may pay its suppliers and other counterparties.”
The tagging of shares, on the other hand, prevents the registration or recording of any transfer of the shares in the records or system of the stock and transfer agent until the writ of attachment is lifted. LBCEHI said the tagging of the shares “has no material adverse effect” on LBCDC’s ability to continue managing and operating LBCEHI.
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