PSE receives seizure order on LBC Express assets

The Philippine Stock Exchange (PSE) has received a notice of garnishment against the assets owned by LBC Express Holdings Inc. to cover P1.824 billion in a claims suit against LBC Express and other defendants in the case.

"The said Notice advises the Exchange that the garnishment is being made on all goods, effects, stocks, interests in stocks and shares, and any other personal properties in its possession or under its control belonging to the defendants in the said civil case to cover the amount of P1,824,686,444.00," LBC revealed in a disclosure on Wednesday.

Last week, LBC Express told the stock exchange it has received a summons and a writ of preliminary attachment, stemming from the civil cases filed against it by the shuttered LBC Development Bank.

Represented by the state-owned Philippine Deposit Insurance Corp. (PDIC), LBC Development Bank claimed it was owed P1.8 billion in unpaid service fees by LBC Express. Other defendants in the case are LBC Development Corp. and LBC Express Inc.

The PSE provided the LBC Express with a copy of the notice of garnishment it has received, the company said in its disclosure on Wednesday.

In another disclosure on Wednesday, Araneta Properties Inc. told the PSE it has not received any notice from any court relating to the shares of stock of Araneta Properties held by LBC Express.

"The Philippine Stock Exchange is asking for comments/clarification relating to the notice of garnishment, including the effect of such to Araneta Properties Inc.'s business, operations, and financial condition," the disclosure read.

"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," the property company said. It shares are traded on the PSE under the ticker symbol "ARA."

In any case, Araneta Properties said the impact of any garnishment will simply result in the legal transfer of its shares from LBC Express to another party. "In such an event, there may be a change in the list of stockholders of ARA," it added. – VS, GMA News