G.R. No. 187581 - PHILIPPINE BANK OF COMMUNICATIONS, VS. BASIC POLYPRINTERS AND PACKAGING CORPORATION.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE , the instant petition is hereby DISMISSED . ACCORDINGLY , the Order dated January 11, 2008 of the Regional Trial Court of Imus, Cavite, Branch 21, is hereby AFFIRMED . SO ORDERED . [2] Antecedents Respondent Basic Polyprinters and Packaging Corporation (Basic Polyprinters) was a domestic corporation engaged in the business of printing greeting cards, gift wrappers, gift bags, calendars, posters, labels and other novelty items. [3] On February 27, 2004, Basic Polyprinters, along with the eight other corporations belonging to the Limtong Group of Companies (namely: Cuisine Connection, Inc., Fine Arts International, Gibson HP Corporation, Gibson Mega Corporation, Harry U. Limtong Corporation, Main Pacific Features, Inc., T.O.L. Realty & Development Corp., and Wonder Book Corporation), filed a joint petition for suspension of payments with approval of the proposed rehabilitation in the RTC (docketed as SEC Case No. 031-04). [4] The RTC issued a stay order, and eventually approved the rehabilitation plan, but the CA reversed the RTC on October 25, 2005, [5] and directed the petitioning corporations to file their individual petitions for suspension of payments and rehabilitation in the appropriate courts. Accordingly, Basic Polyprinters brought its individual petition, [6] averring therein that: ( a ) its business since incorporation had been very viable and financially profitable; ( b ) it had obtained loans from various banks, and had owed accounts payable to various creditors; ( c ) the Asian currency crisis, devaluation of the Philippine peso, and the current state of affairs of the Philippine economy, coupled with: ( i ) high interest rates, penalties and charges by its creditors; ( ii ) low demand for gift items and cards due to the economic recession and the use of cellular phones; ( iii ) direct competition from stores like SM, Gaisano, Robinson and other malls; and ( iv ) the fire of July 19, 2002 that had destroyed its warehouse containing inventories worth P264,000,000.00, resulting in difficulty of meeting its obligations; ( d ) its operations would be hampered and would render rehabilitation difficult should its creditors enforce their claims through legal actions, including foreclosure proceedings; ( e ) included in its overall Rehabilitation Program was the full payment of its outstanding loans in favor of petitioner Philippine Bank of Communications (PBCOM), RCBC, Land Bank, EPCIBank and AUB via repayment over 15 years with moratorium of two-years for the interest and five years for the principal at 5% interest per annum and a dacion en pago of its affiliate property in favor of EPCIBank; and ( f ) its assets worth P15,374,654.00 with net liabilities amounting to P13,031,438.00. [7] Finding the petition sufficient in form and substance, the RTC issued the stay order dated August 31, 2006. [8] It appointed Manuel N. Cacho III as the rehabilitation receiver, and required all creditors and interested parties, including the Secur