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Friday, March 29, 2024

Garnishment against LBC lifted

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A Makati regional trial court lifted the garnishment order against LBC Group of the Araneta family, after the defendants delivered a counter-bond for the P1.8-billion case filed by Philippine Deposit Insurance Corp. in relation to the shuttered LBC Development Bank.

LBC Express said in disclosure to the stock exchange Makati RTC branch 143 issued an order to lift and set aside the writ of preliminary attachment issued on Dec. 17, 2015 and the garnishment on LBC Group’s assets.

“The order to lift and set aside the preliminary attachment directs the sheriff of the court to deliver to the defendants all properties previously garnished pursuant to the writ of preliminary attachment,” LBC Express said.

“The counter-bond delivered by the defendants shall stand in place of the properties so released and shall serve as security to satisfy any final judgment in the case,” it said.

LBC Express said that in compliance with such order, the sheriff of Makati RTC branch 143 served the lifting of the garnishment against the company on the main offices of Landbank of the Philippines, BDO Unibank Inc., Metropolitan Bank and Trust Company, Bank of the Philippine Islands, Rizal Commercial Banking Corp. and Philippine National Bank

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The defendants to the case are LBC Express Inc., LBC Development Corp, LBC Properties Inc., Juan Carlos Araneta, Santiago Araneta, Fernando Araneta, Monica Araneta, Carlos Araneta, Ma. Eliza Berenguer, Ofelia Cuevas, Apolonia Ilio, Joseph Jeffrey Rodriguez and Arlan Jurado.

PDIC, the appointed receiver and liquidator of LBC Development Bank, claimed it was owed P1.8 billion in “unpaid service fees” by the defendants.

LBC Development Bank, a 20-unit thrift bank of the Araneta group, was ordered closed by the Monetary Board of Bangko Sentral ng Pilipinas and placed under receivership by PDIC on Sept. 9, 2011, 

PDIC filed syndicated estafa charges against former officials and employees of LBC Development Bank in September last year for misappropriating P60 million of the bank’s funds generated from the public by way of deposits.

LBC Development is  the parent company of the listed LBC Express Holdings, which in turn owns LBC Express Inc.

LBC Express is one of the country’s leading courier and freight forwarding services firms.

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