More on the unfolding tale of the Steel Corporation of the Philippines which I have written here and on this post, too.
Steel Corporation of the Philippines is the only 100% Filipino-owned steel company in the country, but it seemed like the die is cast and it is undergoing liquidation after all. My heart goes out to more than 300 employees of SCP who are now facing the monsters of unemployment, in what is supposed to be the merriest time of the year, after the court has decided to place it under liquidation proceedings. This decision seem to have sealed their case along with all the hopes to recover from all their corporate woes.
Batangas City Regional Trial Court {RTC} Branch-3 Judge Ruben Galvez issued a decision in favor of the liquidation proceedings resulting for the legal counsels of SCP to ask permission to leave the court room and staged a walk-out to protest something they believed to be an unfair decision of what they dubbed as a “kangaroo court.”
The court immediately held an election to determine the members of the Board of Liquidation of the said company.
Atty. Nonnatus Chua, one of the lawyers of SCP, insisted the liquidation proceedings order from Judge Galvez is illegal because of numerous prejudicial issues not considered by the court and were left hanging. “We have several prejudicial issues which must be resolved first. In the case of liquidation, it must come after the order of such liquidation becomes final. After approval of the rehabilitation plan by the lower court, the remedy is Rule 65 and a Motion for Reconsideration… we still have 15 days to file MR but the court did not take this into consideration,” he further explained.
The lawyers of SCP have filed a number of Motion for Reconsideration {MR} but they felt that they have not received proper attention and consideration from the court. They are also asking Judge Galvez to inhibit from the case if he has delicadeza.
“Ang ipinagtataka namin ay kung bakit napakabilis ng desisyon niya na i-deny ang motion namin na i-suspend muna ang liquidation. Biro mo, last Friday lang namin yun inihain, tapos on the same day, dineny agad niya ito. At yung kanyang desisyon na inilabas pabor sa liquidation, parang prepared na rin at matagal na niyang ginawa.” Chua lamented.
Apart from that the court has yet to clarify the confusion regarding the classification of creditors according to Chua.
Aside from Banco De Oro {BDO}, there are other creditor banks which has loaned SCP like Planters Bank, Chinabank, Land Bank of the Philippines at DEG {Deutsche Investitions-und Entwicklungsgesellschaft}.
All banks mentioned are “secured creditors”. However, while the court hearing was being held, some of the lawyers of the said banks appealed as to how and why they were wrongly classified as “unsecured creditors.”
“Samakatuwid ay hindi accurate ang ginawang pag-classify sa bawat creditors. Paano naman natin masasabing parehas ang desisyon ng korte gayong sa pag-classify pa lamang ng mga creditors ay sablay na sila. To put order in this proceedings we should comply with the mandatory requisites,” Chua enthused.
He also cited the big difference on the rights and responsibilities between a “secured” at “unsecured” creditor pointing that it is very important to determine their correct classification.
