6 January 2015

SECURITIES AND EXCHANGE COMMISSION

SEC Building, EDSA
Greenhills, Mandaluyong City

Attention:

Director Vicente Graciano P. Felizmenio, Jr.

Director, Markets and Securities Regulation Department

Gentlemen:
Re:

LBC Express Holdings, Inc. (the Company)

Civil Case No. 15-1258 involving LBC Development Corporation and LBC
Express, Inc.

Further to our disclosures via Form 17-C dated and filed with the Securities Exchange
Commission (the Commission) on 5 January 2015 (a copy of which we attach hereto
for your easy reference) and, in compliance with the Commissions directive contained
in your letter dated 5 January 2016 (the Letter), set forth below is the written
disclosure regarding the information requested to be provided by the Company.
1.

Service of Preliminary Attachment

Based on the information provided by personnel of LBC Express, Inc. (LBC Express),
the writ of preliminary attachment was served by Ray A. Bantug, Sheriff IV, at
approximately 4 p.m. on 28 December 2015 at Pacis Law Office with address at the 8th
Floor Chatham House, Valero Street, Salcedo Village, Makati City. Pacis Law Office is
where Ms. Christine P. Base, a partner therein, holds office. Ms. Base is indicated in
the last General Information Sheet of LBC Express as its Corporate Secretary. The
Company, however, understands that, in line with the acquisition of LBC Express by the
Company, a new corporate secretary has since been appointed by LBC Express.
Following receipt by Pacis Law Office of the Writ of Preliminary Attachment, Mr. Enrique
V. Rey, Chief Compliance Risk and Investor Relations Officer of LBC Express, was
advised by telephone of such receipt. Copies of said Writ Preliminary Attachment were
secured by the staff of Mr. Rey from Pacis Law Office on 28 December 2015 and
immediately delivered to LBC Express legal counsel for their review and disposition.
2.

Assets Attached

As of 12:00 noon of 6 January 2015, the assets and corresponding amounts attached
are as follows:

Bank Name and Branch

BDO - Airport
BDO - Airport Road
BDO-AIRPORT RD
BDO-NEWPORT
BPI-Mia Road
BPIFB - PASAY TAFT
TOTAL AMOUNT

3.

Account Type
Peso-Current
Account
Peso-Current
Account
Peso-Current
Account
Peso-Current
Account
Peso-Current
Account
Peso-Current
Account

Amount
Php9,755,996.17
Php61,564.29
Php50,000.00
Php50,000.00
Php54,152.23
Php4,491.60
Php9,976,204.29

Immediate Effect on Business Operations and Plan of Action

As of date hereof, there has been no immediate material impact on the business
operations of the Company and LBC Express. LBC Express continues to exert utmost
effort to fully attend to the needs of its customers and ensure regular ongoing
operations. Nevertheless, we anticipate that as the Writ of Preliminary Attachment is
being executed and until LBC Express shall have implemented its remedies designed to
meet and/or challenge said Writ of Preliminary Attachment, LBC Express will need to
take measures and find alternative channels of payments to its suppliers, lessors and
other counterparties. This may pose some administrative and operational challenges
given that we anticipate further garnishment of bank accounts. To address this, LBC
Express has advised its customers, suppliers, lessors and other counterparties and has
encouraged them to coordinate with LBC Express to ensure continued payments and
services. LBC Express has also commenced the process of communicating with its
bankers. Further, LBC Express Inc. is thoroughly assessing the situation through the
assistance of legal counsel, and will exhaust all legal remedies to resolve this matter as
soon as possible
As we had noted in our earlier disclosure, the writ is a provisional remedy and the
assets or cash of LBC Express shall be made to answer only upon final judgment being
rendered against LBC Express. We are very much aware, however, that whether or not
the claims against LBC Express are successfully proven, there can be no assurance
that these claims will not cause business interruptions or reputational harm to LBC
Express Holdings, Inc. and may ultimately have a material adverse effect on its financial
performance and prospects.

We trust that you will find the foregoing explanation satisfactory. Rest assured, we shall
continue to update both the Commission and the Philippine Stock Exchange on this
matter via timely disclosures regarding material events, including a disclosure on the
assets attached, all in accordance with applicable regulations.

Very truly yours,

MIGUEL ANGEL A. CAMAHORT

Chairman, President and CEO