One of the leading steel companies in the country, The Steel Corporation of the Philippines (SCP) seems to lost hope of renewing from the corporate anguish that they are now facing after the court has decided to place it under liquidation proceedings.
According to Batangas City Regional Trial Court (RTC) Branch-3 Judge Ruben Galvez’ evaluation in favor of the bankruptcy arraignment, which lead for the legal counsels of SCP to asked permission to leave the court room. They walked out of the court room and objected on what they believed an unfair decision and described as a "kangaroo court."
Meanwhile, the court held an election to determine the members of the Board of Liquidation of the said company.
One of the lawyers of SCP, Atty. Nonnatus Chua asserted that the liquidation proceedings order from Judge Galvez is illegal because there are still a lot of prejudicial issues that were left hanging and were not considered by the court.
“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,” Chua explained.
Moreover, Chua said the court has yet to clarify the confusion regarding the classification of creditors.
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).
These banks have been specified as “secured creditors.” of SCP. However, while the court hearing was being held, some of the lawyers of the said banks appealed as to how and why they were 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 these proceedings we should comply with the mandatory requisites,” Chua added.
He also noted that there is a big difference on the rights and responsibilities between a “secured” at “unsecured” creditor thus it is very important to determine their correct classification.
SCP is the only 100% Filipino-owned steel company in the country.
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.
