MANILA – The Court of Appeals affirmed the Regional Trial Court’s (RTC) decision allowing the cash-strapped firm College Assurance Plan Philippines Inc. (CAP), to undergo a three-year extension and modification of the company’s rehabilitation plan.
Associate Justice Amelita Tolentino, of the Court’s Fourth Division penned a seven-page decision denying Securities and Exchange Commission (SEC) and the Insurance Commission’s (IC) petition to nullify the Makati RTC’s approval of CAP’s 2012 revised rehabilitation plan.
The CA held that the rehabilitation plan cannot be set aside after the petitioners’ failure to show the alleged “grave abuse” from the trial court.
Having been directly and closely involved in the rehabilitation of CAP for already quite some time, the court a quo cannot be faulted if it opted to adopt the recommendation of the rehabilitation receiver,” according to the CA.
“Being appointed by the court, and thus considered as an officer of the court, it is only appropriate that the suggestion of the rehabilitation receiver should be given weight and credence by the court,” it added.
The court further noted that the petitioners failed to provide evidence that will support their claims saying CAP Pension affected the projections of the developer.
“The fact that there are properties owned by CAP Pension which are included in the proposed redevelopment project of respondent CAP is not sufficient ground for the disapproval of the request for extension or modification of the rehabilitation plan, which is poised to benefit the plan holders,” the CA said.
CAP was seeking for an extension and modification of its rehabilitation plan following a developer’s expressed interest to redevelop the company’s idle real-estate properties into mixed-use commercial-residential condominium projects.