Here is another story about The Steel Corporation of the Philippines (SCP). Hope you will have time to read and share your opinion.
The Steel Corporation of the Philippines (SCP)seems to have given up hope of rising up again from the corporate woes it is facing after the court has decided to place it under liquidation proceedings.
Batangas City Regional Trial Court (RTC) Branch-3 Judge Ruben Galvez issued a decision favouring the liquidation proceedings, which lead for the legal counsels of SCP to asked permission to leave the court room and staged a walk-out to protest something they believed as an unfair decision of what they described as a “kangaroo court.”
The court immediately held an election to determine the members of the Board of Liquidation of the said company.
Atty. Nonnatus Chua, one of the lawyers of SCP, insisted that the liquidation proceedings order from Judge Galvez is illegal because there are still a lot of prejudicial issues that were left hanging and were not considered by the court.
“We have several prejudicial issues which must be resolved first. In the case of liquidation, it must come after the order of such liquidation becomes final. After approval of the rehabilitation plan by the lower court, the remedy is Rule 65 and a Motion for Reconsideration… we still have 15 days to file MR but the court did not take this into consideration,” Chua explained.
Moreover, Chua said the court has yet to clarify the confusion regarding the classification of creditors.
Aside from Banco De Oro (BDO), there are other creditor banks which has loaned SCP like Planters Bank, Chinabank, Land Bank of the Philippines at DEG (Deutsche Investitions-und Entwicklungsgesellschaft).
All banks enumerated are “secured creditors.” However, while the court hearing was being held, some of the lawyers of the said banks appealed as to how and why they were classified as “unsecured creditors.”
“Samakatuwid ay hindi accurate ang ginawang pag-classify sa bawat creditors. Paano naman natin masasabing parehas ang desisyon ng korte gayong sa pag-classify pa lamang ng mga creditors ay sablay na sila. To put order in this proceedings we should comply with the mandatory requisites,” Chua added.
He also noted that there is a big difference on the rights and responsibilities between a “secured” at “unsecured” creditor thus it is very important to determine their correct classification.
SCP is the only 100% Filipino-owned steel company in the country.
The lawyers of SCP have filed a number of Motion for Reconsideration (MR) but they felt that they have not received proper attention and consideration from the court. They are also asking Judge Galvez to inhibit from the case if he has delicadeza.
“Ang ipinagtataka namin ay kung bakit napakabilis ng desisyon niya na i-deny ang motion namin na i-suspend muna ang liquidation. Biro mo, last Friday lang namin yun inihain, tapos on the same day, dineny agad niya ito. At yung kanyang desisyon na inilabas pabor sa liquidation, parang prepared na rin at matagal na niyang ginawa.” Chua lamented.
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I think this cased was rushed and a lot of things was overlooked, which lead to a lot of unanswered question.
The result of this liquidation proceedings will definitely put another industry to a close and that means… additional unemployment in the country. Such bad news to know about the real condition of SCP.
I agree and for sure there are a lot of behind the scenes stories we don’t know. Just sad esp Christmas time is coming.
This happens everytime. Something fishy going on. Hope it will be fixed soon.
I hope for a fast and positive resolution of this case, and I also hope the SCP employees will not have a sad Christmas this year because there are people who depend on them for financial support.
I hope for a fast and positive resolution of this case for the sake of the SCP employees and their families.
This is going to have domino effect, suppliers, buyers and especially the employees and their families will definitely be affected by this liquidations. It’s so sad =(
I think no matter what happens always be prepared. And be neutral for both parties.
the sad thing about this is that a lot of people will be affected and this is because of a few who do illegal things… and worst, gets away with it… vault files! Yahweh bless.
The court immediately held an election to determine the members of the Board of Liquidation of the said company. I think no matter what happens always be prepared. And be neutral for both parties. The result of these liquidation proceedings will definitely put another industry to a close and that means.
The Steel Corporation of the Philippines is an international company listed in the Pink Sheet Index of Stock and the ISX 500. It is part of the REIT group which is one of the largest construction companies all over the world. One of its major activities is the development and expansion of steel plants all over the world. Aside from that, it also provides various services such as welding, metal fabrication, metal processing, and construction. It has a main manufacturing facility in the Philippines’ Tagaytay city.
Aside from that, Steel Corporation of the Philippines also has other manufacturing facilities in China and Vietnam. These facilities are in different countries, but in all the mentioned countries, the main products Steel Corporation of the Philippines sell are steel pipes and tubing and steels. Steel tubes and pipes are used for different construction purposes such as road building, bridges, buildings, and buildings and industrial complexes. Meanwhile, stainless steels are used to create steel products used for manufacturing automobiles, ships, planes, and other machinery. The company has diversified its business line to offer many more products in different segments to satisfy the world’s need for steel.