The Makati Regional Trial Court issued a stay order preventing Picop Resources and its affiliate, New Paper Industries Corp., from selling, encumbering, transferring or disposing of properties except in the ordinary course of business.
The court issued the order in response to the petition for corporate rehabilitation filed by Land Bank of the Philippines for Picop and New Paper Industries.
Makati RTC presiding judge Cesar Untalan said the court found the petition filed by LandBank for the corporate rehabilitation of Picop and New Paper sufficient in form.
The court appointed Roberto Lozada as rehabilitation receiver.
Picop is the only integrated forest and paper company in the country. It is engaged in the manufacture of newsprint and pulpwood products, while New Paper Industries is into buying and selling pulp, paper and paper bonds of every kind.
LandBank is a creditor of Picop, holding more than 25 percent of the company’s total liabilities based on last year’s audited financial statement.
The bank said Picop’s financial obligations had ballooned and that the company could no longer pay its obligations as they fell due.
LandBank said Picop hasdalso begun to default on the payment of its outstanding obligation despite several restructuring and demand.
LandBank earlier said it filed the petition “for Picop and New Paper to continue operating in view of the massive impact in the 12 municipalities and the City of Bislig in the four provinces affected by its operations.”
Picop earlier asked the assistance of LandBank for the release of its harvesting permit, which had been pending since June last year with the office of the environment secretary.
Picop hoped that the court and LandBank could help facilitate the release of the harvesting permits from the Energy and Natural Resources Department. Manila Standard Today. Jenniffer B. Austria (August 16, 2008)
No comments:
Post a Comment