The Office of the City Prosecutor of Antipolo has dismissed a libel complaint filed by popular food chain Cravings against officials of the Philippine Veterans Bank (PVB), who earlier sued the former for non-payment of a P43-million loan.
Documents from the Antipolo Prosecutor’s Office showed that Cravings Food Services Inc (CFSI) filed the libel complaint on February 26, 2019, alleging that the civil case filed by PVB against it “blemished the honor of its business.”
Cravings claimed that the civil proceedings being pursued by the bank made CFSI appear that it participated in fraudulent acts and dishonorable conduct. It added that such negative connotation tarnished the name and good will of the company.
But in a resolution dated March 7, 2019, Antipolo City Prosecutor Mari Elvira Herrera approved the dismissal of the libel complaint. CFSI filed a motion for reconsideration, but the Prosecutor’s Office stood by its decision and denied the appeal in a resolution dated October 23, 2019.
CFSI earlier availed from the PVB a total Revolving Promissory Note Line (RPNL) of P50 million, but the company defaulted in its obligation to pay the bank the amount as well as the corresponding interest and penalties.
On February 6, 2018, the PVB filed the case against CFSI for collection of sum of money and damages. The court also granted the bank a writ of preliminary attachment so PVB attached several properties registered in the names of CFSI, CNA Culinary Services, Inc., spouses Frederick Jonathan A. Trinidad and Marinela G. Trinidad, and Susan Guererro.
As of December 31, 2018, the outstanding obligation of CFSI amounts to P42,047,579.51.