Republic of the Philippines
REGIONAL TRIAL COURT
5th Judicial Region
BRANCH 21
Naga City

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AMENDED ORDER

Petitioner Philippine Deposit Insurance Corporation (PDIC) through counsel filed a verified petition for assistance in the liquidation of G7 Bank, Inc. (Rural Bank of Nabua, Inc.) or G7 Bank for brevity.

The petitioner alleges that it is a government-owned and controlled corporation created and existing under and by virtue of Republic Act 3591, as amended, and is the designated liquidator of the G7 Bank; that G7 Bank was a bank organized and was in existence in accordance with the laws of the Republic of the Philippines, with principal business address at G7 Bank Centre, Panganiban Drive, Concepcion, Naga City; that on July 31, 2008, pursuant to Resolution No. 961 of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP, for brevity), G7 Bank was placed under the receivership of the petitioner, and was prohibited from doing business in the Philippines after the said Board had determined that G7 Bank, which was duly accorded due process, (a) is considered to have suspended the payment of its deposit liabilities continuously for more than 30 days; (b) is unable to pay its liabilities as they become due in the ordinary course of business; and (c) cannot continue in business without involving probable losses to its depositors and creditors; that consistent with, and on the strength of the aforesaid Resolution, the petitioner, as the appointed Receiver, took over the assets and affairs of G7 Bank on August 1, 2008; that as mandated by Section 30 of Republic Act (R.A.) No. 7653 (New Central Bank Act), on August 14, 2009, the petitioner reported to the Monetary Board of the BSP that G7 Bank, at its present financial condition, cannot anymore resume business with safety to its depositors, creditors, and the general public; that on the basis of the aforementioned Report, on September 3, 2009, the Monetary Board of the BSP issued Resolution No. 1256 directing herein petitioner to proceed with the liquidation of the G7 Bank in accordance with Section 30 of the New Central Bank Act; that consistent therewith, the petitioner submitted a copy of the Master Receivership/Liquidation Plan, which was duly adopted and approved by its Board of Directors in Resolution No. 2007-12-07 dated 20 December 2007 for general application in the liquidation of all closed banking institutions; and that the petitioner anticipates that in the course of the liquidation of G7 Bank, disputed claims, issues and other matters material or relevant to the liquidation of G7 Bank may arise. Thus, pursuant to the provision of Section 30 of the New Central Bank Act, the petitioner seeks the assistance of this Court in the resolution of the disputed claims and relevant issues.

Finding the petition to be sufficient in form and substance, the same is hereby GIVEN DUE COURSE. Accordingly, let the petition be set for continuation of initial hearing on June 28, 2010 at 8:30 in the morning.

Let a copy of this Order be published at the expense of the petitioner once in a newspaper of general circulation in the Philippines.

Let also copies of this Order be posted in the bulletin boards of the RTC Hall of Justice and the City Hall, both at Naga City, and at the principal office of G7 Bank at least two (2) weeks before the scheduled date of hearing.

Those who may have a claim against the assets of G7 Bank are directed to file their respective claims with this Court within ninety (90) days from the date of publication of the aforesaid Order of this Court.

Likewise, any interested party may file his or her opposition to this petition within the aforesaid period.

SO ORDERED.

Given in Chambers this 26th day of March 2010, at Naga City, Philippines.

PStar, April 29, 2010