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June 19, 2024

CA affirms order allowing PDIC to liquidate Banco Filipino assets

The Court of Appeals (CA) has denied the appeal by Banco Filipino Savings and Mortgage Bank (Banco Filipino) preventing its receiver from liquidating the lender’s remaining assets.

The receiver, the Philippine Deposit Insurance Corp. (PDIC), issued a statement Friday saying the CA’s former Special Ninth Division denied the bank’s motion for reconsideration for lack of merit and for lack of new issues convincing the court to modify or reverse its October 14, 2021 resolution.

That resolution pertains to the CA order upholding the Monetary Board (MB) decision on October 27, 2011 placing the lender under PDIC liquidation.

The CA on September 7, 2020 dismissed Banco Filipino majority stockholder Metropolis Development Corp. (MDC) petition on the ground that the lender’s expiration of corporate life on June 25, 2014 had rendered moot its petition for certiorari.

MDC claimed it can continue for up to three years after its dissolution to wind up its affairs and that the MB decision placing the bank under liquidation within seven months from closure diminished their rights as stockholders over the bank’s assets.