G.R. No. 154187 - MONDRAGON LEISURE AND RESORTS CORPORATION, VS. UNITED COCONUT PLANTERS BANK. D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE , foregoing premises considered, this petition is denied due course and accordingly DISMISSED . [4] The July 2, 2002 Resolution denied reconsideration. The Facts The facts of the case are narrated by the appellate court as follows: On February 28, 1994, Mondragon International Philippines (MIPI), Mondragon Securities Corporation (MSC) and petitioner x x x entered into a Lease Agreement with the Clark Development Corporation (CDC) for the development of what is now known as the Mimosa Leisure Estate. The parties also subsequently executed Supplemental Lease Agreements for additional smaller areas. x x x x x x x x x Over the years, petitioner poured more than P5 Billion in investments to develop the 232-hectare Mimosa Leisure Estate. Among others, petitioner put up the Holiday Inn Hotel, the Mimosa Regency Casino, the Monte Vista Hotel, the Mimosa Golf and Country Club with its 36-hole golf course and other world-class facilities and amenities. On November 23, 1995, the parties herein executed an Omnibus Credit and Security Agreement (Omnibus Agreement) whereby respondent bank has agreed, among others, to provide financing to petitioner to be used for the development, operation and management of the leased properties covered by the Lease Agreement, consisting of a Term Loan in the principal amount of Three Hundred Million Pesos (P300,000,000.00). In the said Omnibus Agreement, petitioner has agreed, among others, to constitute an assignment of its leasehold rights accruing from the Lease Agreement, in favor of respondent x x x, up to the extent of the value of such leasehold rights in the amount of Six Hundred Million Pesos (P600,000,000.00). In order to secure the repayment of the loan which petitioner had obtained from the respondent bank, petitioner agreed to provide as collateral the assignment of the leasehold rights granted pursuant to the Lease Agreement. Likewise, petitioner executed in favor of respondent x x x Promissory Note PN 573595040194 on December 21, 1995 in the amount of Three Hundred Million Pesos (P300,000,000.00). Petitioner likewise executed a Deed of Assignment also dated November 23, 1995, over its leasehold rights, in favor of respondent x x x. On April 24, 1996, the parties executed an Amendment to Omnibus Credit and Security Agreement (Amendment) whereby the collateral under the Omnibus Agreement was limited to that of the leasehold right covering the Holiday Inn Hotel Building. x x x x x x x x x x x x [B]ecause of the impact of the Asian economic crisis which started in July 1997 and x x x differences with [Philippine Amusement and Gaming Corporation (PAGCOR)] and CDC which eventually led to the untimely temporary closure of the Mimosa Regency Casino, petitioner experienced severe financial setbacks. x x x x x x x x x x x x [On August 12, 1999, respondent filed Civil Case No. 9510, entitled United Coconut Planters Bank vs. Mondragon Leisure and Resorts Corporation, at the Regional Trial Court of Ang