EYCO group asks SEC to appoint liquidator

The consortium of creditor-banks for the EYCO group of companies which inlcude appliance maker Nikon Industrial Corp. is asking the Securities and Exchange Commission (SEC) to appoint a liquidator to ensure an orderly disposal of the company's assets.

In its supplemental motion with the SEC, the creditor-banks said the appointed liquidator will protect and preserved the remaining assets of the EYCO group.

Aside from a liquidator which will be chosen from a list of names to be provided by the consortium, the creditor-banks also want the SEC to issue a writ of execution that will enable them to enforce the regulatory body's order to start the liquidation of the company's assets.

The banks requested the SEC to also implement the following: order the conservator committee to cease from operating and consequently to desist and refrain from acting on behalf of the EYCO group, including causing the withdrawal, use dissipation; order the EYCO group to stop transferring or selling assets in favor of any person or any juridical entity, whether creditor or not; authorize the consortium banks to safeguard and take into custody the company's assets pending appointment of a liquidator.

EYCO is fighting its creditor banks which earlier filed a motion with the SEC urging it to issue a writ of execution order which will authorize the consortium banks to safeguard and take into custody the company's assets pending appointment of a liquidator.

The banks insisted this is possible even if the Court of Appeals has yet to issue its ruling on the petition of EYCO for a TRO.

The EYCO group earlier appealed to the CA for a TRO and subsequently, a writ of injunction, saying the SEC decision was erroneous and was a grave abuse of discretion since it lacked jurisdiction in rendering the decision. It added the SEC gave the order to liquidate the assets without any valid authority from its creditors. --