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  • Case No. 131 Bank of The Philippine Islands Vs Sarabia Manor Hotel Corporation G.R. No. 175844 July 29, 2013 Facts

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    Sarabia Manor Hotel Corporation sought to make annual payments on principal loans to Bank of the Philippine Islands starting in 2004 in escalating amounts depending on cash flow. The regional trial court found Sarabia's rehabilitation petition sufficient and issued a stay order, appointing a rehabilitation receiver. The Bank of the Philippine Islands filed an opposition. The court held that the bank's opposition was not proper, as the rules on corporate rehabilitation are meant to give companies flexibility to address financial difficulties and restore operations in a way that considers all stakeholders.

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    Case No 131 (1)

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    Sarabia Manor Hotel Corporation sought to make annual payments on principal loans to Bank of the Philippine Islands starting in 2004 in escalating amounts depending on cash flow. The regional trial court found Sarabia's rehabilitation petition sufficient and issued a stay order, appointing a rehabilitation receiver. The Bank of the Philippine Islands filed an opposition. The court held that the bank's opposition was not proper, as the rules on corporate rehabilitation are meant to give companies flexibility to address financial difficulties and restore operations in a way that considers all stakeholders.

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    4 views1 page

    Case No. 131 Bank of The Philippine Islands Vs Sarabia Manor Hotel Corporation G.R. No. 175844 July 29, 2013 Facts

    Uploaded by

    juhriz
    Sarabia Manor Hotel Corporation sought to make annual payments on principal loans to Bank of the Philippine Islands starting in 2004 in escalating amounts depending on cash flow. The regional trial court found Sarabia's rehabilitation petition sufficient and issued a stay order, appointing a rehabilitation receiver. The Bank of the Philippine Islands filed an opposition. The court held that the bank's opposition was not proper, as the rules on corporate rehabilitation are meant to give companies flexibility to address financial difficulties and restore operations in a way that considers all stakeholders.

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    © All Rights Reserved
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    Case No.

    131
    BANK OF THE PHILIPPINE ISLANDS VS SARABIA MANOR HOTEL CORPORATION
    G.R. No. 175844 July 29, 2013

    FACTS:
    Sarabia is a corporation duly organized and existing under Philippine laws, with principal place
    of business at Iloilo City.
    Sarabia sought to make annual payemnts on the principal loans staring 2004, also in escalating
    amounts depending on cash flow.

    Finding Sarabia’s rehabilitation petition sufficient in form and substance, the RTC issued a Stay
    Order. It also appointed Liberty Valderrama as Sarabia’s rehabilitation receiver. Thereafter, BPI
    filed its Opposition.

    ISSUE: Whether the BPI’s opposition is proper.

    HELD:
    No. Recognizing the volatile nature of every business, the rules on corporate rehabilitation have
    been crafted in order to give companies sufficient leeway to deal with debilitating financial
    predicaments in the hope of restoring or reaching a sustainable operating form if only to best
    accommodate the various interests of all its stakeholders, may it be the corporation’s
    stockholders, its creditors and even the general public.

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