Reversing 2017 decision, CA stops BSP from disposing assets of BF

The Court of Appeals (CA) has reversed its 2017 decision and has stopped the Bangko Sentral ng Pilipinas (BSP) from bidding out, selling, and disposing of the assets of the padlocked Banco Filipino Savings and Mortgage Bank.

In a resolution written by Associate Justice Edwin Sorongon, the CA said the receivership issue involving Banco Filipino and the liquidation of the bank are still pending, respectively, with the Supreme Court (SC) and another division of the appellate court.

Reversed by the CA was its 2017 decision that lifted the writ of preliminary injunction issued by the Makati City regional trial court (RTC) against the disposition of the assets of Banco Filipino.

With the reversal, the CA granted the motion for reconsideration filed by Ekistics Philippines, Inc., Banco Filipino’s stockholder, which sought the reversal of the 2017 decision.

“Based on these circumstances, it is not difficult to see that the implementation of our assailed decision might put to naught the appeal thus filed since it would effectively render a favorable resolution in these cases moot and academic,” the CA said in its resolution.

Case records showed that in 1985 Banco Filipino was padlocked but was ordered reopened by the SC nine years later in 1994.

On March 17, 2011, the BSP and the Monetary Board (MB) again placed Banco Filipino under the receivership of the Philippine Deposit Insurance Corporation (PDIC) which ordered its liquidation on Oct. 27, 2011.

The BSP-MB’s orders on receivership and liquidation have been elevated by the bank’s shareholders to the SC where the case is still pending.

The trial court suspended the liq- uidation of Banco Filipino as it acted favorably on the case filed by the bank’s stockholders.

But while the liquidation proceedings were suspended, BSP published in its website an invitation to bid for the sale of certain properties, including those of Banco Filipino’s.

Ekistics filed with the trial court a case to stop the disposition of Banco Filipino’s assets. The trial court granted its plea.