Eyco creditors poise lawsuit vs conservator committee

The consortium of creditor banks of the Eyco group of companies said the conservator committee of the bankrupt firm is acting without authority and vowed to file a lawsuit if it continues to meddle with company funds.

This authority, the bank told the Securities and Exchange Commission (SEC), was effectively abolished when the commission en bank issued an order last Sept. 14, 1999, dissolving and discharging all committees, conservator and receivers created earlier by the SEC.

On the other hand, the authority of the SEC hearing panel mandated in the Sept. 14 order to act as liquidator for EYCO was also superseded when the new rules of procedure on corporate recovery took effect last Jan. 15, 2000, surrendering such authority to the commission en bank.

Despite these, the EYCO conservator committee, according to the consortium of the creditor banks, has been illegally disbursing company funds. The banks led by the Philippine National Bank have threatened to file criminal or civil charges against members of the conservator committee if they continue with their unauthorized use of company money.

Earlier, in a letter sent to conservator chairman Amado M. Santiago Jr., the banks through their legal counsels said among others: "In this connection, kindly cease and desist from further acting as a member of the now defunct conservator committee, especially in disposing or causing the disposal of the EYCO group's assets. Considering that your present acts and those of the now defunct conservator committee are without legal authority, you may render yourself personally liable to criminal/ and or civil charges in case the consortium suffers further injury because of the continuing dissipation of the EYCO group's assets."

Santiago said, however, that the committee continues to discharge its function because it has been ordered to turn over the assets of the corporation to a liquidator.

Santiago asked the SEC hearing panel to issue guidelines whether it should step aside to give in to a SEC-appointed liquidator of the company's remaining assets.

Santiago said the receiver is at a loss on how to go about the demand of the creditor banks.

The creditor banks want the SEC to immediately appoint a liquidator to stop the unauthorized disbursement of company funds and oversee the orderly disposal of company assets and order payments of all debts.