Saturday, November 24

Steel Corporation of the Philippines, Placed Under Liquidation Proceedings


If you are a constant reader of my blog, you have probably read the different posts about SCP or Steel Corporation of the Philippines and their battle against the Judicial system of our country. Several individuals are currently affected with all the suits going on between the parties. Employees of SCP are endangered of losing their jobs due to the seemingly unfavorable judgment made against their corporation. In this post, you will be able to read another update about the case of SCP. Let us keep ourselves aware of what is happening. May justice be served to those who deserve it.
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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.

17 comments:

  1. This is a very sad thing for many employees of Steelcorp. These people rely on Steelcorp for their bread and butter and to have it close down at this untimely season is a real hard blow.

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  2. This is bad news for all the employees. Especially now that the holiday season is coming. It could be very heartbreaking for them. I just hope that Steelcorp will provide them with the proper compensations.

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  3. Such a sad situation. Papano na lang ang mga pamilya ng workers, mgpapasko pa naman.

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  4. Justice must be served and meted out by Steel Corp's employees. My sympathy goes out to the families that has been affected by the company's melt down brought about by legal proceedings. It's just a pity that these things happen in time for the holiday season.

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  5. so sad to read about what is going on with the company, so sad to know that those hard workers has to start from the beginning again, in PI we don't have a lot of opportunities so we would rather stick into the company that would give us a ways to survive poverty now, it'll be hard for those employees for they don't know where to start in order to feed their families...

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  6. sorry to hear about that, may justice be served indeed, and hopefully, whatever happens, those who are affected will be able to find job and/or source of income.

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  7. I hope they will resolve the issue and should be favor to the employees especially when Christmas is fast approaching, sigh!

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  8. wow that was fast.. they should make some considerations with the employees who are working in this company. judges now a days just do what they want to do.

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  9. I feel bad for the employees....this is really depressing...:(

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  10. sorry to hear about that,I hope those who are affected could find job.

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  11. Sometimes there really are sad realities in life;I pray everything will be resolved in due time and that those affected will eventually make it through...blessed day :-) may hearts be touched to do the right thing :)

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  12. This is such a sad news especially for the employees. I hope that justice be served to those who really deserves it.

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  13. Kakalungkot naman ang flight ng mga SCP employees, christmas season pa naman nagbaba ng decision si 'Pere-pera" judge.

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  14. We have to pray for the benefit of the employees.

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  15. This is very sad! :(
    Kawawa ang workers at ang mga pamilya nila! :(

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  16. Very sad, specially in times like these, where the economy is not as easy and as good as before...I feel for them...

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  17. It is so sad to hear how judicial process could be unfair and could swiftly change the lives of the workers who have been working in that company. I do hope those who will possibly loose their job in the process would be able to find job so they can put food on their table.

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