Court stops Land Bank from foreclosing Malate hotel

MANILA, Philippines - The Manila regional trial court has stopped the state-owned Land Bank of the Philippines from taking control over the posh Pan Pacific Manila after it reportedly incurred unpaid debts worth P300-million. In a three-page decision of Judge Gregorio Clemena of the Manila RTC-branch 51, the court granted the motion sought by Adriatico Consortium Inc (ACI), and Primary Realty Corp (PRC) seeking to stop the foreclosure of the property in Malate, Manila. “Wherefore, the motion for execution is granted. Let a writ of execution be issued directing respondent Land Bank to suspend all actions against petitioner and particularly with respect to Mortgage Participation certificate no. 0002 and 0004 including the transfer of the same to the buyer at the public auction," the Court ruled. The RTC prohibited Land Bank and private defendant William Siy “or any of its agents, representatives, or employees" from foreclosing the hotel. Petitioners had sought the execution of the court’s partial decision on January 31, 2001 approving the compromise agreement between the two parties. Under the compromise deal, Land Bank and Pan Pacific's incorporators agreed not to take any more legal action while the court is still determining whether the latter is liable to pay the bank the P300 million. Meanwhile, in a statement issued by Arturo S. Santos, the hotel’s lawyer, the alleged indebtedness was incurred by JV Williams Realty, Inc. which is owned by Siy, the son-in-law of Benito Cu, owner of ACI. Siy was allegedly able to borrow from Landbank using “falsified documents" making it appear that he was authorized by ACI to enter into a loan agreement using ACI’s collateral. “Whatever account Adriatico Consortium, Inc. had under a totally different set up albeit its availment from the P200 million credit line amounted to P60 million pesos only, pursuant to a Partial Compromise Agreement dated January 31, 2001," Santos said. He added that under the agreement, Land Bank obligated itself not to take any action against Mortgage Participation Certificate No. 0002 valued at P200 million and 0004 worth P300 million pesos while the issue of its validity is being contested in court. - GMANews.TV