Depositors’ bid to stop Banco Filipino liquidation dismissed

Banco Filipino. AFP FILE PHOTO

MANILA, Philippines—The Court of Appeals dismissed the bid of depositors of Banco Filipino to stop the Bangko Sentral ng Pilipinas, Monetary Board and the Philippine Deposit Insurance Corporation (PDIC)) from proceeding with the liquidation of the bank and stop the sale of its assets.

Early this month, intervenors led by St. Martin’s Foundation and other depositors with more than P500,000 deposit and the bank’s employees said declaring the bank as insolvent was done hastily and without proof of notice to the bank’s board.

They said not only was the stockholders who already has a separate petition with the appeals court would be prejudiced but the employees and depositors as well.

“Banco Filipino’s illegal closure has effectively resulted in the BSP divesting depositors of their hard-earned savings and in the BSP depriving employees of their permanent means of livelihood, which at bottom is a serious deprivation of live and liberty,” intervenors said.

“Depositors and employees are literally dying and continuously incurring debts to sustain their daily needs,” they said adding that they have no other recourse but to join the stockholders in their petition against the bank’s liquidation and sale of assets.

But the appeals court, in a resolution promulgated March 18 but released to the public Thursday, said “allowing the intervention will unduly delay the adjudication of the rights of the original parties [stockholders].”

The appeals court said the depositors’ uninsured deposits, in case the liquidation of Banco Filipino pushes through can be the subject of a separate case.

The BSP has placed the bank under receivership early 2011.

The appeals court ordered the bank’s closure. Its stockholders filed a separate petition and currently pending with the appeals court.