Land Bank of the Philippines (LandBank) is set to lose P2 billion in mortgaged properties from bankrupt Paper Industries Corp. of the Philippines (Picop), once the largest pulp and paper mill in Asia.
Picop is under Securities and Exchange Commission receivership and is expected to surrender its assets to LandBank due to loan non-payment.
However, impostor labor claimants have executed an illegal levy and auction on Picop’s assets, which violates Makati RTC Branch 149’s Stay Order aimed at preserving the company’s assets and causes losses to LandBank, Picop’s biggest creditor.
Francisco Buencamino, Makati RTC-appointed rehabilitation receiver of Picop, has written a letter to Finance Secretary Benjamin Diokno and Trade Secretary Alfredo Pascual to preserve Picop’s assets, and has also sought the assistance of LandBank President Cecilla Borromeo.
LandBank is Picop’s major creditor and has the primary claim against its assets.