The Philippine Deposit Insurance Corporation (PDIC) has filed a civil case against LBC Development Corporation and LBC Express, Inc. on behalf of the now-closed LBC Development Bank, Inc. The PDIC claimed the defendants—LBC Development Bank’s parent and subsidiary—owe the bank some P1.8 billion in unpaid service fees.
In a disclosure to the Philippine Stock Exchange, LBC Express Holdings, Inc. said it received the issuance of summons and a writ of preliminary attachment in relation to Civil Case No. 15-1258, which has been filed at the Makati Regional Trial Court Branch 143.
Defendants include LBC Properties, Inc., Juan Carlos Araneta, Santiago Araneta, Fernando Araneta, Monica Araneta, Carlos Araneta, Ma. Eliza G. Berenguer, Ofelia F. Cuevas, Apolonia L. Ilio, Joseph Jeffrey Rodriguez, and Arlan T. Jurado.
LBC Express Holdings said the summons, together with a copy of the complaint and the writ of preliminary attachment, “was supposedly served on the former Corporate Secretary of LBC Express, Inc. on 28 December 2015.”
As of January 4, LBC Express Holdings said LBC Development Corp. and LBC Express, Inc. have yet to file their answers to the complaint. The holding firm said the two are assessing legal remedies available to them.
The two companies noted their disclosures to the PSE “should not be taken as an admission by any of the defendants in the said case of the validity or propriety of the service of the summons and/or the writ of preliminary attachment or the summons and/or the writ in itself.”
LBC Express Holdings explained that the writ of preliminary attachment directs 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. However, this writ is provisional and pending until after the final outcome of the legal action made.
“Whether or not the claims against LBC Express, Inc. and/or LBC Development Corporation 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,” LBC Express Holdings said.
