FACTS:
Leonor Ang worked as Executive Secretary for Tropical Philippines Wood Industries, Inc. (TPWII) starting from March 1977. In September 1983, TPWII's plant facilities and equipment were foreclosed by the Development Bank of the Philippines (DBP), resulting in temporary shutdowns for servicing purposes. In January 1986, DBP took possession of the foreclosed properties, causing TPWII to cease operations. Consequently, Ang was verbally terminated in April 1986.
Ang filed a complaint in December 1987 against TPWII, its General Manager, and DBP seeking various employment benefits. The Labor Arbiter ruled that TPWII was primarily liable for Ang's separation pay, as well as vacation and sick leave pay, with DBP being subsidiarily liable. The National Labor Relations Commission affirmed the Labor Arbiter's decision in November 1992.
Now, the issue before the Supreme Court is whether Article 110 of the Labor Code applies to the case. Article 110 pertains to worker preference in situations involving the bankruptcy or liquidation of an employer's business. The question is whether this provision is applicable, even though there was no formal declaration of bankruptcy or judicial liquidation for TPWII.