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BPI FAMILY SAVINGS BANK v. PRYCE GASES

FACTS:

Pryce Gases, Inc. (PGI) is a corporation involved in the production, sale, and trade of various liquids, gases, and chemicals. PGI owes debts to International Finance Corporation (IFC) and Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO), prompting IFC and FMO to file a petition for rehabilitation with the Regional Trial Court (RTC) due to PGI's failure to pay its debts and the refusal of its parent company, Pryce Corporation, to provide financial support. The case was assigned to Branch 142 and titled as SP Proc. No. 02-1016.

IFC and FMO proposed a financial restructuring plan that involved converting the dollar-denominated loans of PGI to peso and splitting the debt into sustainable and unsustainable portions. The sustainable debt would be rescheduled as a senior loan secured by PGI's assets, while the unsustainable portion would be transformed into redeemable preferred shares. BPI Family Savings Bank, Inc. (BFB), one of PGI's creditors, objected to the proposed mode of payment called "dacion en pago" and filed a notice of appeal. However, the RTC dismissed the appeal due to BFB's failure to perfect it within the prescribed period. BFB filed a motion for reconsideration, but it was denied by the RTC. BFB then sought relief from the Court of Appeals through a petition for certiorari, which was ultimately dismissed.

ISSUES:

  1. Whether or not the appeal filed by BPI Family Savings Bank (BFB) in the rehabilitation proceedings of Pryce Gases, Inc. (PGI) was properly dismissed for failure to perfect the appeal within the required period.

  2. Whether or not the prohibition on filing motions for reconsideration in the Interim Rules of Procedure on Corporate Rehabilitation applies to the case.

RULING:

  1. The appeal filed by BFB was properly dismissed for failure to perfect the appeal within the required period. The Regional Trial Court (RTC), Branch 138, ruled that in special proceedings, a record on appeal is required to perfect the appeal. Since BFB failed to file the record on appeal within the required period, the appeal was dismissed.

  2. The prohibition on filing motions for reconsideration in the Interim Rules of Procedure on Corporate Rehabilitation applies to the case. The RTC, Branch 138, denied BFB's motion for reconsideration on the ground that the Interim Rules of Procedure on Corporate Rehabilitation prohibit the filing of motions for reconsideration.

PRINCIPLES:

  • In special proceedings, a record on appeal is required to perfect an appeal.

  • The Interim Rules of Procedure on Corporate Rehabilitation prohibit the filing of motions for reconsideration.