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Notices to Creditors of Closed Banks

Petition for Assistance in the Liquidation of the Rural Bank of Hinigaran ( Negros Occidental), Inc.,

Republic of the Philippines

REGIONAL TRIAL COURT

6^th JUDICIAL REGION

Bacolod City

Branch ______

In re: PETITION FOR ASSISTANCE IN THE LIQUIDATION OF RURAL BANK OF HINIGARAN ( NEGROS OCCIDENTAL), INC.,

Sp. Proc. No. 12-2280

PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC),

Petitioner.

X--------------------------------------------X

P E T I T I O N

PETITIONER Philippine Deposit Insurance Corporation (PDIC), by counsel, unto this Honorable Court, respectfully avers: That-

1.Petitioner, a government instrumentality, with principal office address at SSS Building, Ayala Avenue corner V.A Rufino Street, Makati City, created and existing under and by virtue of Republic Act. No. 3591, as amended, (PDIC Charter), is the designated Liquidator of RURAL BANK OF HINIGARAN (NEGROS OCCIDENTAL), INC. (" RBHI", for brevity).

2.Prior to its closure, RBHI was a bank organized and existing in accordance with the laws of the Republic of the Philippines with principal place of business address at Burgos Street, Bacolod City.

3.On 14 October 2010, pursuant to Monetary Board Resolution No. 1434 of the Bangko Sentral ng Pilipinas (BSP, for brevity), RBHI was placed under the receivership of the petitioner, and was prohibited from doing business in the Philippines. Monetary Board Resolution No. 1434 provides as follows:

"On the basis of the examination findings as of 30 April 2010 as reported by the Integrated Supervision Department (ISD) II, in its memorandum dated 11 October 2010, which findings showed that the Rural Bank of Hinigaran (Negros Occidental), Inc. (RB Hinigaran) (a) is unable to pay its liabilities as they become due in the ordinary course of business; (b) has insufficient realizable assets to meet its liabilities; and (c) cannot continue in business without involving probable losses to its depositors and creditors, and considering the failure of the Board of Directors/ management of RB Hinigaran to restore the bank's financial health and viability despite considerable time given to address its financial problems, and that the bank had been accorded due process, the Board, in accordance with Section 30 of Republic Act (R.A) No. 7653 ( The New Central Bank Act), decided as follows:

1.To prohibit RB Hinigaran from doing business in the Philippines, and to place its assets and affairs under receivership, and

2.To designate the Philippine Deposit Insurance Corporation as Receiver of xxx".

The photocopy of Monetary Board Resolution No. 1434 dated 14 October 2010 is attached hereto as ANNEX "A"

4. Consistent with, and on the strength of said Resolution, petitioner took over the assets and affairs of RBHI on 15 October 2010.

5. Under Section 30 Republic Act 7653, otherwise known as "The New Central Bank Act," petitioner as such Receiver, is mandated among others, to determine whether the institution may be rehabilitated or otherwise placed in such a condition so that it may be permitted to resume business with safety to its depositors and creditors and the general public.

6. Pursuant thereto, on 12 December 2011, petitioner transmitted through a letter dated 01 December 2011, a Receivership Report to the Monetary Board stating among others, that RBHI cannot be rehabilitated nor can it resume business with safety to its depositors, creditors and the general public. Photocopies of the letters dated 01 December 2011 and Receivership Report are attached hereto as ANNEXES "B" and "C", respectively.

7. On 15 December 2011, on the basis of the aforementioned Receivership Report, the Monetary Board issued Resolution No. 1872 designating petitioner as the liquidator of RBHI and directing it to proceed with the liquidation of the Bank. Monetary Board Resolution No. 1872 provides as follows:

"On the basis of the report on the receivership operations of the Rural Bank of Hinigaran (Negros Occidental), Inc. (RB Hinigaran) prepared by the Philippine Deposit Insurance Corporation (PDIC), as receiver, and transmitted by Mr. Valentin A. Araneta, President, PDIC in a letter dated 1 December 2011, that the PDIC determined that RB Hinigaran at its present condition, cannot be rehabilitated nor permitted to resume business with safety to its depositors, creditors, and the general public, the Board, in accordance with Section 30 of Republic Act No. 7653 ( The New Central Bank Act), decided as follows:

1. To instruct Management to notify in writing the Board of Directors of RB Hinigaran of PDIC's findings; and

2. To direct PDIC to proceed with the liquidation of the aforementioned bank."

The photocopy of the said Resolution is attached hereto as ANNEX "D"

8. Members of the Board of Directors of RBHI were notified by the Officer-in- Charge of the Integrated Supervision Department II, Bangko Sentral ng Pilipinas, of this Resolution of the Monetary Board through letters dated 27 December 2011, photocopies of which are attached as ANNEXES "D-1" to "D-6".

9. This petition is being filed pursuant to said Section 30, supra, the relevant portion of which states that-

"x x x The receiver shall: (1) file ex parte with the proper regional trial court, and without requirement of prior notice or any action, a petition for assistance in the liquidation of the institution pursuant to a liquidation plan adopted by the Philippine Deposit Insurance Corporation for general application to all closed banks."
"x x x Upon acquiring jurisdiction, the court shall upon motion of the receiver after due notice, adjudicate disputed claims against the institution, assist the enforcement of individual liabilities of the stockholders, directors and officers and decide on other issues as may be material to implement the liquidation plan adopted. The receiver shall pay the cost of the proceedings from the assets of the institution." (Underscoring and emphasis supplied.)

10. Consistent therewith, petitioner hereby submits a copy of the Master Receivership / Liquidation Plan (MRLP), which was duly adopted and approved by its Board of Directors in Resolution No. 2007-12-207 dated December 20, 2007 for general application in the liquidation of all closed banking institutions. A Copy of the MRLP is attached hereto as ANNEX "E".

11. Petitioner anticipates that in the course of the liquidation of RBHI, disputed claims, issues and other matters material or relevant to its liquidation may arise. Thus, pursuant to the provision of Section 30, supra, petitioner seeks the assistance of the Honorable Court in the resolution thereof.

12. Insofar as relevant to this petition, the Supreme Court held, in Pacific Banking Corporation Employees Organizations vs. Court of Appeals, et al.:¹

"A liquidation proceeding is a single proceeding which consists of a number of cases properly classified as claims. It is basically a two- phased proceeding. The first phase is concerned with the approval and disapproval of claims. Upon the approval of the petition seeking the assistance of the court in the liquidation of a closed entity, all money claims against the bank are required to be filed with the liquidation court. This phase may end with the declaration by the court that the claim is not proper or without basis. x x x
"The second phase involves the approval of the court of the distribution plan prepared by the duly appointed liquidator. x x x The order finally disposes of the issue of how much property is available for disposal. Moreover, its ushers in the final phase of the liquidation proceeding, payment of all allowed claims in accordance with the order of legal priority and the approved liquidation plan" (Underscoring and emphasis supplied)

________________________
¹242 SCRA 492

P R A Y E R

WHEREFORE, premises considered, it is respectfully prayed that the Honorable Court -

1. After finding the instant Petition for Assistance in the Liquidation of RURAL BANK OF HINIGARAN (NEGROS OCCIDENTAL), INC. to be sufficient in form and substance, issue an Order

DIRECTING the petitioner to cause the posting in three (3) public places and the one time publication in a newspaper of general circulation of the Honorable Court's Order;
SETTING the date and time for the initial hearing; and
DIRECTING those who may have a claim against the assets of the Bank to file their respective claims with the petitioner within ninety (90) days from the date of publication of the above-mentioned Order.

2 Thereafter, upon submission of proof of jurisdictional requirements, that an Order be issued by the Honorable Court GIVING DUE COURSE to the instant Petition for Assistance in the Liquidation of RURAL BANK OF HINIGARAN (NEGROS OCCIDENTAL), INC.

Such other relief and remedies as are just equitable under the circumstances are likewise prayed for.

Makati City for Bacolod City, 06 February 2012.

OFFICE OF THE GENERAL COUNSEL

PHILIPPINE DEPOSIT INSURANCE CORPORATION

6782 Ayala Avenue cor. Rufino Street, SSS Bldg., Makati City

By:

(Sgd.) ROMEO M. MENDOZA, JR.

General Counsel

IBP Lifetime Roll No. 07053; 12.19.07; Makati

Roll of Attorney No. 36473

MCLE Compliance No. III -00015775; 13 May 2010

(Sgd.) MA. ANTONETTE BRILLANTES BOLIVAR

IBP OR No. 873955; 12.14.11; Manila III Chapter

Roll of Attorney No. 38269

MCLE Compliance No. III-0015722; 05.13.10

(Sgd.) HILARIO N. MARBELLA

IBP O.R No. 873963; 12.14.11; Cal/Ma/Nav

Roll of Attorney No. 37031

MCLE Compliance No. III -0015765; 05.13.10

(Sgd.) EVANGELINE QUEVEDO DE LEON

IBP O.R .No 873957; 12.14.11; Quezon City

Roll of Attorney No. 47205

MCLE Compliance Cert. No. III -0015736; 13 May 2010

Republic of the Philippines)

Makati City ) S.S.

VERIFICATION AND CERTIFICATION OF NON FORUM SHOPPING

I, ANA ROSA E. VIRAY, Filipino, of legal age, with office address at the 5th floor, PDIC Ayala Extension Office, SSS Building, Ayala Avenue corner V.A. Rufino Street, Makati City, after having been duly sworn to in accordance with law, do hereby depose and state:

1. I am the Officer - In - Charge of Receivership and Bank Management Department I of PDIC, which is in charge of the over -all supervision of the liquidation of RURAL BANK OF HINIGARAN (NEGROS OCCIDENTAL), INC. As such, I have the authority to sign and verify pleadings pursuant to PDIC Board Resolution No. 2005-01-017 (ANNEX "A- Verification");

2. I have caused the preparation of the foregoing petition entitled "Petition for Assistance in the Liquidation of RURAL BANK OF HINIGARAN (NEGROS OCCIDENTAL), INC."; and have read the same and that the allegations therein contained are true and correct based on authentic records of the bank; and that I have not heretofore directed the commencement of any other action or proceeding involving the same issues in the Supreme Court, the Court of Appeals, or any other tribunal or agency;

3. To the best of my knowledge, no such action or proceeding is pending in the Supreme Court, the Court of Appeals, or any other tribunal or agency;

4. And should I thereafter learn that a similar action or proceeding has been filed or is pending before the Supreme Court, the Court of Appeals, or any other tribunal or agency, I undertake to report that fact within five (5) days therefrom to this Honorable Office.

(Sgd.) ANA ROSA E. VIRAY

Affiant

SUBSCRIBED AND SWORN to before me this Feb.15, 2012, in the City of Makati, affiant exhibiting to me her Employee I.D No. 232 issued by the PDIC.

Doc. No.313

Page No.63

Book No.VI

Series of 2012

(Sgd.) ATTY. LUISITO Z. MENDOZA

NOTARY PUBLIC FOR MAKATI CITY

Appointment No. M-184 Until Dec. 31, 2012

Roll No. 37663/ IBP No. 873965

6782 SSS Bldg., Ayala Ave. Makati

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