G.R. NO. 166197, February 27, 2007 Meanwhile, the contention of the petitioner in their
objection was that, the approval on the rehabilitation
Metropolitan Bank & Trust Company, petitioner
plan will impair the contract entered into by the ASB
vs group of companies with the petitioner.
ASB Holdings, Inc., respondents
ISSUE:
appointment of a rehabilitation reciever merely suspend "to effect a feasible and viable rehabilitation" of ailing
the action for claims against respondent corporations. corporations which affect the public welfare.
Petitioners banks preferred status over the unsecured
creditors relative to the mortgage liens is retained, but the
enforcement of such preference is suspended. the loan
agreement between the parties have not been set aside
and petitioner bank may still enforce its preference when
the assets of ASB Group of companies will be liquidated.
considering that the provisions of the loan agreements
and merely suspends, there is no impairment of
contracts, specifically its lien on the mortgaged
properties.