The Philippine Stock Exchange said Monday it received an order from the Makati regional trial court to seize the stocks and personal properties of LBC Express Holdings Inc.
The order stemmed from the P1.8-billion collection case filed by state-run Philippine Deposit Insurance Corp. against the LBC Group of the Araneta family.
PSE said in a memorandum posted on its Web site the notice of garnishment involved all goods, effects, stocks, interests in stocks and shares and any other personal properties of the LBC Express and affiliates in the possession of the exchange or under control of the exchange in the amount of P1.82 billion.
“Said notice of garnishment further notified the exchange not to deliver, transfer or otherwise dispose of such property to any person or entity other than the deputy sheriff of RTC Makati Branch 143,” the PSE said.
Araneta Properties Inc., another Araneta-led listed company, said it had not received any notice of garnishment from any court or tribunal relating to company shares owned by LBC Express.
“In the event that we receive a notice of garnishment, said garnishment will have no material effect on ARA’s business, operations and financial condition,” Araneta Properties said.
“There will only be an effect if such garnishment results in the legal transfer of the concerned ARA shares from LBC to another party. In such event, there may be a change in the list of stockholders of ARA,” it said.
The Makati court sheriff last week garnished six bank accounts of courier company LBC Express, one of the country’s leading courier and freight forwarding services companies. The six bank accounts had a combined balance of P9.976 million.
PDIC is seeking payment from the LBC Group, following the closure of LBC Development Bank in September 2011. PDIC, the appointed receiver and liquidator of LBC Development Bank, said the defendants owed P1.8 billion.
LBC Development is the parent company of listed company LBC Express Holdings, which in turn owns LBC Express Inc.
LBC Express earlier said while the initial garnishment had no immediate material impact on business operations, further garnishments of its bank accounts could pose some administrative and operational challenges in terms of payment to suppliers and business partners.
LBC Express said it advised its customers, suppliers, lessors and other counter-parties to coordinate with the company to ensure continued payments and services.
LBC Express said it would continue to exert utmost effort to fully attend to the needs of customers and ensure regular ongoing operations.
The company said it also commenced the process of communicating with its bankers.