State-run Philippine Deposit Insurance Corp. is seeking a P1.8-billion payment from the LBC Group of the Araneta family following the closure of LBC Development Bank in September 2011.
LBC Express Holdings Inc. said in a disclosure to the stock exchange the Makati regional trial court branch 143 issued a preliminary attachment against LBC Development Corp. and LBC Express. Inc., after PDIC filed civil cases to collect “unpaid services fee.”
PDIC, the appointed receiver and liquidator of LBC Development Bank, said the defendants owed P1.8 billion.
LBC Development is the parent company of the listed company LBC Express Holdings, which in turn owns LBC Express Inc.
The company said the writ of preliminary attachment directed the sheriff of the court to attach real and personal properties of any of the defendants sufficient to satisfy the plaintiff’s claim and costs of suit, unless any or all of the defendants provide security to satisfy any final judgment in the case, in the manner provided by the rules of court.
“Said writ is a provisional remedy and thus remains pending the final outcome of the legal action instituted. In the event that the court finds against the defendants by final judgment, the properties attached by virtue of the writ shall be used to answer for any sum of money awarded by the said court in the said civil case,” the company said.
“Whether or not the claims against LBC Express Inc. and/or LBC Development Corp. are successfully proven, there can be no assurance that these claims will not cause business interruptions or reputational harm to LBC Express Holdings Inc. and may ultimately have a material adverse effect on its financial performance and prospects,” it said.
LBC Development and LBC Express have not filed their respective answers to the complaint yet.
LBC Development Bank, a 20-unit thrift bank, was ordered closed by the Monetary Board of Bangko Sentral ng Pilipinas and placed under receivership of PDIC on Sept. 9, 2011.
PDIC also filed syndicated estafa charges against former officials and employees of LBC Development Bank in September 2015, for allegedly misappropriating P60 million of the bank’s funds generated from the public by way of deposits.
Trading of LBC Express was halted for one hour Monday following the disclosure. Share price of LBC Express closed at P11.90, down P0.10.