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Bank of Cebu remains under receivership

First Posted 11:08:00 10/03/2006

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Depositors of Bank of Cebu can expect their claims to be processed.

This developed after the Court of Appeals (CA) special 19th division denied the request from Bank of Cebu officials, shareholders, depositors and employees for the issuance of a temporary restraining order (TRO).

?After a perusal of the instant petition, we find no merit and urgency in the prayer for the immediate issuance of a TRO; hence, the prayer for a TRO is denied,? Associate Justice Romeo Barza said in a September 19 resolution.

The CA gave the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp. (PDIC) 10 days upon receipt of the order to file their comment and to show cause why the writs of preliminary injunction asked by Bank of Cebu should not be granted.

The Bank of Cebu and other petitioners will be given five days upon receipt of the BSP and PDIC's comment to file their own comment.

Justice Barza and Associate Justices Isaias Dicdican and Antonio Villamor also ruled that the issuance of an injunction was held in abeyance ?until the receipt of the respondents? (BSP, PDIC and Bank of Cebu's) comments.?

The petitioners sought the CA?s assistance after the bank?s seven branches were closed on August 31.

The petitioners accused BSP and the PDIC of acting without or in excess of their jurisdiction and committing grave abuse of discretion when they retrenched bank employees.

Officials of the PDIC earlier expressed apprehension that a restraining order issued against them may delay the payment of the depositors? claim for deposit insurance.

With the TRO, they said the PDIC could no longer process the insurance claim of depositors.

On September 8, PDIC started releasing payments for depositors with claims of P250,000 or less. There are 7,800 depositors in the bank's seven branches.

Bank of Cebu holds its main office on Manalili Street corner Osmeña Boulevard. Its other branches are located in Tabunok, Talisay City, Carcar, Consolacion, Mandaue City, Lapu-Lapu City and the Mactan Export Processing Zone.

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