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editorial@thestandard.com.ph
Road-clearing drive stepped up By Joel E. Zurbano
The government has tapped the “netizens” or internet users for its renewed campaign against illegally parked vehicles and other obstructions along Mabuhay Lanes, alternate routes used by private motorists avoiding the congested epifanio de los Santos Avenue. The latest operation conducted from June 1-7 resulted in the apprehension
and towing of 47 illegally parked cars, motorcycles and public utility vehicles in
the areas of Mayon Street, e. rodriguez avenue, Banawe Street, Scout Tobias, Del Monte Street, agham Street, Hemady Street, la loma, and Gilmore, all in Quezon City. Composite teams from Metro Manila Development authority—Parking Discipline Group and Task Force Mabuhay lanes—conducted the operation upon the directives of MMDa chairman emerson Carlos to clear the areas of all obstructions based on
REPUBLIC OF THE PHILIPPINES
Regional Trial Court
NATIONAL CAPITAL JUDICIAL REGION BRANCH 93, QUEZON CITY IN THE MATTER OF THE PETITION FOR REHABILITATION OF SP. PROC. No. R-QZN16-04658-SP CYBERTISING PHILS., INC. AND EA MANUFACTURING CORP Petitioners. x-----------------------------------------------x
COMMENCEMENT ORDER Before this Court is the verified Amended Joint Petition for corporate rehabilitation filed by Cybertising Phils., Inc. and EA Manufacturing Corp., domestic corporations organized and existing under Philippine laws with principal offices at No. 38 Sagittarius Street, Barangay Talipapa, Novaliches, Quezon City. Petitioner EA Manufacturing Corp. (EA Manufacturing), incorporated on 27 November 19981, is engaged in the business of manufacturing goods such as plastic products and packaging materials while petitioner Cybertising Phils., Inc. (Cybertising), incorporated on 03 July 20002, is engaged in the business of general advertising with the use of any form of media such as but not limited to radio, television and movie houses. According to the joint petition, petitioners have the same set of stockholders, directors and officers. They are located at the same principal office. All the assets, affairs and operation of the petitioners are intertwined and are exposed to possible attachment by the same creditors. Petitioners also have the same sets of clientele.
Emerson Chester Kim B. Go Kyle Justin B. Go Alexander O. Baltazar
-President -Corporate Secretary and Treasurer -Director -Director -Director
-President -Corporate Secretary -Treasurer -Director -Director
In sum, petitioners’ general business and fmancial condition are shown in the Income Tax Returns fIled for the years 2014 and 201510 for each of the petitioners, in the Report of Independent Auditors11, in the schedule of its debts and liabilities, Interim Financial Statements12 , Inventory of Assets and Schedule of Accounts Receivables13, Payment and Disposition of Assets14, Statements of Cash Flow15, Possible Claims by or against petitioners16 and the Affidavit ofGeneral Financial Condition17 . In its proposed ten-year Amended Proposed Rehabilitation Plan18, Cybertising and EA Manufacturing are expected to raise an average of about 19% to 20% growth in their revenue. By reinforcing its capacity for digitalization and cost reduction policies, Cybertising expenses will gradually decline. EA Manufacturing can strengthen its income generation by digitalization and by supporting the business of Cybertising. The petitioners presently occupy a 5,000 square-meter office space. In order to maximize its use, the petitioners shall offer the same for warehouse lease. The sale of scrap materials from the advertising products is another source of income. Additional sources of income will be generated from the printing of election campaign materials and leasing of advertising space for the upcoming 2016, 2019 and 2022 national and local elections, providing an incremental income of 2% to 3%. Moreover, the stockholders of both corporations have undertaken to support the petitioners’ operation through capital infusion. And that while EA Manufacturing will be requiring Five Million Pesos additional capital, Cybertising is projected to sustain itself while paying its creditors as anticipated in the proposed restructuring period. The petitioners thereafter submitted their nominees19 for the position of a rehabilitation receiver. Finally, a further perusal of the verified Amended Joint Petition shows that it is accompanied by all the documents required under Sec. 2 (B), Rule 2 of A.M. 12-12-11-SC, entitled Financial Rehabilitation Rules of Procedure (2013) and dated 27 August 2013. WHEREFORE, finding the petition sufficient in form and substance, a COMMENCEMENT ORDER is hereby issued pursuant to Sec. 8, Rule 2 of the Rules, has the effects stated pursuant to Sec. 9 and the exceptions provided in Sec. 10, Rule 2 and directs as follows:
60% 37% 1% 1% 1%
45% 34% 10% 10% 1%
The filing of the Joint Petition was approved in a meeting held on 20 May 2016 by the corporations’ Board of Directors thereby authorizing the president Eugene C. Go as evidenced by the copies of their attached Secretary’s Certificates5. Petitioner EA Manufacturing is the co-debtor of petitioner Cybertising in the short term credit facility availed from the United Coconut Planter’s Bank which are secured by the real properties owned by the corporations’ majority stockholders Spouses Eugene Go and Angelita Go. Petitioners assented to become co-petitioners in the case as it is more convenient and beneficial for both Corporations to be treated together. EA Manufacturing started as a small backyard plastic manufacturing business located at Caloocan City with two plastic extrusion machines and two plastic cutting machines. The products produced, ice bags and ice candy bags, were supplied to wet markets, groceries and sari-sari stores. With the success of EA manufacturing, Mr. Go was thereafter approached to venture into the printing business which resulted in the creation of Cybertising Phils., Inc. Cybertising engaged in the printing, installations and fabrications of tarpaulins, booths, signages and the like. It also manufactures indoor and outdoor advertising and promotional products. Cybertising and EA Manufacturing expanded their business by venturing into billboard manufacture/ production. Among their clients include: San Miguel Corporation, Universal Robina Corp. Goodyear Philippines, Pilipinas Shell, Selecta, RFM, GMA Network, ABS-CBN, Jollibee and Globe Telecom. On 07 April 2008, their warehouse located at No. 67 C-3 Road, Dagat-dagatan, Caloocan City was gutted by fire 6 Since petitioners wanted to start anew, they decided to transfer the conduct of their business and left their principal office at 158 Nadurata St., 7th Avenue, Grace Park, Caloocan City. Sometime in October 2008, Mr. Go, the President, signed a lease agreement7 for their new principal office and warehouse located at No. 38 Sagittarius St., Barangay Talipapa, Novaliches, Quezon City. They started their actual operation in the said address only in January 2009. Earlier or sometime in the year 1998, Mr. Go for the account for EA Manufacturing, was given by the UCPB bills purchased line in the amount of One Million Pesos and rediscounting check of Two Million Pesos. After six months, UCPB doubled the said bills purchased line into the amount of Two Million Pesos and rediscounting check of Five Million Pesos. Petitioners started to import resin products causing the approval of Letters of Credit and Trusts Receipts for another Ten Million Pesos. When Cybertising was incorporated in the year 2000, UCPB approved a credit line of Twenty Million Pesos each for Cybertising and EA Manufacturing. Petitioners’ business prospered as they had remarkable profit from the year 2004 until 2006. They were able to import tarpaulin for printing lamp posts and billboards. Their application for the combined credit facility called “Omnibus Line” was then approved by the UCPB. The maximum credit limit given to Cybertising was One Hundred Million Pesos for Promissory Note and Twenty Million Pesos for Letters of Credit with Bills Purchased for a total of One Hundred Twenty Million Pesos. On the other hand, EA Manufacturing was given a credit limit of Thirty Five Million Pesos for Trust Receipts and Fifteen Million Pesos for Promissory Notes inclusive of Bills Purchased for a total of Fifty Million Pesos. The said Omnibus Line is secured by real properties located in Caloocan City and registered in the name of Spouses Eugene and Angelita Go. As earlier highlighted, petitioners’ warehouse was gutted by fire in 2008 which resulted in the suspension of their operation for almost seven months. While petitioners’ imported products were insured with the UCPB, the insurance proceeds were not sufficient to offset petitioners’ loan with the UCPB at the time of frre. Petitioners resumed operation in January 2009 after transferring their principal office and warehouse in their present address in Quezon City. The typhoon Ondoy in 2009 which badly flooded Manila caused an estimated damage of Twenty Million Pesos upon petitioners’ equipment. The succeeding typhoons, Pedring in 2011, Maring and Mario in 2013 caused further damage to their operations as their equipment suffered an estimated damage in the amount of Seven Million Pesos.
Based on its Audited Financial Statements for the fiscal year ending 31 December 2015, Cybertising has a Total Assets and Total Liabilities and Stockholder’s Equity of Php 198,519,172.00 As of 30 April 2016, based on its interim financial statement, Cybertising’s total assets is Php81,501,451.68, total current liabilities of Php119,969,080.00 and long term liabilities of Php31,558,959.42. Based on its Audited Financial Statements for the fiscal year ending 31 December 2015, EA Manufacturing has a Total Assets and Total Liabilities and Stockholder’s Equity of Php52,877,725.00. As of 30 April 2016, based on its interim [mancial statement, EA Manufacturing’s total assets is Php4,377,747.59 and total current liabilities of Php55,025,906.59.
(a)
SUSPENDING all actions or proceedings in court or otherwise, for the enforcement of all claims, against the petitioners;
(b)
SUSPENDING, all actions to enforce any judgment, attachment or other provisional remedies against the petitioners;
(c)
PROHIBITING petitioners from selling, encumbering, transferring, or disposing in any manner any of its properties except in the ordinary course of business;
(d)
PROHIBITING petitioners from making any payments of its liabilities outstanding as of the commencement date except as provided in Section 10, Rule 2, or when further ordered by this Court pursuant to Section 11 of Rule 2;
(e)
PROHIBITING petitioners’ suppliers of goods or services from withholding supply of goods and services in the ordinary course of business for as long as petitioners make payments for the goods and services supplied after the issuance of Ulis Commencement Order;
(f)
DIRECTING the payment of new loans or other forms of credit accommodations obtained for the rehabilitation of the petitioners with prior court approval.
(g)
DIRECTING the payment of administrative expenses as they become due;
(h)
DIRECTING all contracts not confirmed in writing by the petitioners within ninety (90) days following the issuance of the Commencement Order shall be considered automatically terminated;
The Court hereby appoints Atty. Bob L. Guinto as Rehabilitation Receiver who shall be considered as an Officer of the Court. He shall be initially compensated at THIR1Y THOUSAND PESOS (Php30,OOO.OO) per month exclusive of actual administrative expenses, and shall have the powers, duties and functions set forth in Sec. 26 of the same Rules. Petitioners are hereby directed to immediately serve a copy of this Commencement Order personally to the Rehabilitation Receiver who shall manifest his acceptance or non-acceptance of his appointment not later than ten (10) days from receipt. The Court further orders that before the Rehabilitation Receiver assumes his powers, duties and functions, he must post a BOND in the amount of FIVE HUNDRED THOUSAND PESOS (Php500,000.00) in favor of the petitioner corporations to guarantee that he will faithfully discharge his duties and obey the orders of this Court. Let the instant petition be SET FOR INITIAL HEARING on 12 July 2016 at eight thirty o’clock in the morning before this Court at Room 126-127, Ground Floor, Hall of Justice, Quezon City. All petitioners’ creditors and all interested parties including the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), the Insurance Commission and the Bureau of Internal Revenue (BIR) are hereby directed to FILE AND SERVE a verified COMMENT on or OPPOSITION to the petition with supporting affidavits and documents, not later than flfteen (15) days before the date of the initial hearing and putting them on notice that their failure to do so will bar them from participating in the proceedings. The petitioners are hereby directed to serve, by personal delivery, a copy of the petition on (i) each creditor holding at least ten (10%) percent of the total liabilities of the debtor as determined from the schedule attached to the petition, (ii) the BIR, and the appropriate or relevant regulatory agencies such as but not limited to the SEC, BSP, the HLURB, and the Energy Regulatory Board, within five (5) days from the issuance of the order. All petitioners’ creditors are hereby directed to FILE their VERIFIED NOTICES OF CLAIMS with the Court at least five (5) days before the initial hearing, with a warning that their failure to do so time will bar them from participating in the rehabilitation, proceedings. If a creditor files a belated claim, he shall not be entitled to participate in the proceedings but he shall be entitled to receive contributions arising therefrom if recommended and approved by the rehabilitation receiver, and approved by the Court. Any creditor or debtor may submit the name or nominate any other qualified person to the position of rehabilitation receiver at least five (5) days before the initial hearing; To enable the creditors, interested parties, the SEC, BSP, Insurance Commission and BIR to file their comment/opposition to the petition and to prepare for the initial hearing, they can secure from the Court copies of the petition and its annexes. Further, let a copy of this Commencement Order be PUBLISHED, at petitioners’ expense, in a newspaper (broadsheet) of general circulation in the Philippines once a week for two (2) consecutive weeks, with the first publication to be made within seven (7) days from the time of the issuance of this Order. The petitioners should then file the corresponding Publisher’s Affidavit showing compliance with the publication requirement before the Initial Hearing date, otherwise the same will not be held and the Petition would be denied due course. Finally, let copies of this Order be immediately served on the petitioners, its listed creditors, the SEC, BSP, the Insurance Commission and the BIR, within five (5) days from the issuance of this Order. SO ORDERED. Quezon City, 13 June 2016.
More problems beset the petitioners when the different Local Government Units started to pass ordinances prohibiting the use of plastics and the Metro Manila Development Authority issued regulations related to tarpaulins and billboards. Additionally, the competition brought about by the introduction in the global market of China printing machines further contributed to the dilemma of the petitioners as their clients transferred to their competitors who were able to offer production at lower prices.
should include the name of the sender and the actual picture including the detailed location where the illegally parked vehicle or the obstruction was spotted and the time when it was taken. The MMDa team tasked to monitor the reports will immediately verify all the information and forward it to the agency’s Traffic Discipline Office under the supervision of its director Crisanto Saruca.
Other than their account receivables9, petitioners state that they have no other debtors.
The following are the incorporators and officers of Cybertising 4 with the number of their shares of stocks in percentage: Eugene C. Go Angelita B. Go Emerson Chester Kim B. Go Kyle Justin B. Go Alexander O. Baltazar
of illegal vendors, basketball courts, gambling tables and other structures, including road diggings and they can post and upload them on our social media,” said Carlos. The MMDa launched the social media reporting system in a bid to muster the public and private sectors in reporting to the agency all traffic obstructions on all roads in Metro Manila, especially the 17 Mabuhay lanes. MMDa said the report
and Philhealth contributions in the amount of Php60,250.07 for Cybertising; SSS Loan and Premium in the amount of Php559,482.50, Pag-ibig Loan and Premium in the amount of Php212,691.59 and Philhealth contributions in the amount of Php20,394.92 for EA Manufacturing. The petitioners also received letters of authority from the Bureau of Internal Revenue for their alleged arrears in the total amount of Php78,663,046.80 for Cybertising and Php42,196,261.28 for EA Manufacturing.
The following are the incorporators and officers of EA Manufacturing3 with the number of their shares of stocks in percentage: Eugene C. Go Angelita B. Go
the complaints from affected residents and motorists. The clearing operation is a joint effort with local government units, Department of interior and local Government, and the Philippine national Police-Highway Patrol Group. Carlos said his agency is encouraging the people to cooperate and report illegally parked vehicles and other obstruction on major roads through its website netizens Watch. “Motorists can take pictures
(SGD.) ARTHUR O. MALABAGUIO Presiding Judge 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Cybertising also has other obligations consisting of four lease agreements with the UCPB Leasing and Finance Corp. and and Japan PNB Leasing and Finance Corp. amounting to Php31,558,959.428.
15
Meanwhile, petitioners already failed to meet their government obligations consisting of SSS Loan and Premium in the amount of Php497,450.63, Pag-ibig Loan and Premium in the amount of Php212,691.59
18
16 17 19
Certificate of Incorporation, Annex “A-1 “, Petition. Certificate of Incorporation, Annex “A-3’, Petition. Annex ‘A’, Petition. Annex ‘A·2”, Petition. Annexes ‘B” and ‘ B·1 ‘, Petition. Certification dated 14 April 2008 from Caloocan City Fire Station and Bureau of Fire Protection Report No. 2008·805-829, Annex “C’ to ‘C·l” Lease Agreement, Annex “C·2’ Annexes ‘E’ to ‘ E-3’, Petition. Annexes ‘D-1’ to ‘D-2’, Petition. Annexes “H” to “H-3’, Petition. Annexes “I” to “1-1 “, Petition. Annex’ J’, Petition. Annexes ‘D’ to ‘D-3 to “D-6’, Petition. Annexes “K” to ‘K-3’, Petition. Annexes “L” to ‘L-3”, Petition. Annex ‘M’, Petition. Annex ‘N’, Petition. Annex ‘F’, Petition. Annexes ‘G” to ‘G-2”, Petition.
(TS-JUNE 15/22, 2016)
High court suspends Pamatong for 2 years By Rey E. Requejo Perennial candidate elly Pamatong has been suspended from the practice of law for two years for badmouthing a regional trial court judge. During its en banc session on Tuesday, the Supreme Court found Pamatong guilty of impropriety for committing a slanderous act against the judge. The SC upheld the findings of the integrated Bar of the Philippines recommending the suspension of Pamatong for badmouthing Cagayan de Oro regional Trial Court Judge Gregorio Pantanosas Jr., but reduced the penalty of three years. “The Court agreed with the iBP that respondent’s actions of using slanderous language and publishing an account in the newspaper and attributing the alleged account to the judge constituted misconduct but disagreed with the increased penalty of three years. The Court, considering previous cases of similar nature, reduced the penalty to two years suspension from the practice of law,” Court’s spokesman Theodore Te said, in a media briefing. “We sternly warn the respondent that a repetition of the same or a similar infraction shall merit a more severe sanction,” Te added. The case arose from a civil case being heard by the sala of Pantanosas wherein Pamatong was appearing as counsel. The tribunal noted that during one hearing, the presiding judge asked Pamatong to remove his copia or the headwear worn by Muslims while inside the courtroom, to which the latter refused, citing religious grounds and embarrassment because of his “bald pate.”