LBC Express Holdings Inc. (LBC) halted trading in its shares for an hour on Monday following the disclosure of a legal case filed against the courier involving allegedly unpaid fees amounting to P1.8 billion.
In a disclosure to the Philippine Stock Exchange (PSE), LBC Express said it was advised about the issuance of a summons and writ of preliminary attachment in relation to a case for the collection of money filed by affiliate LBC Development Bank Inc.
LBC Development Bank, the financial service arm of the LBC group of companies, filed a suit against its parent LBC Development Corp. and subsidiary LBC Express Inc.
LBC Development Bank claims that LBC Development Inc. and LBC Express owe it P1.8 billion in unpaid service fees.
LBC Express said that both the summons and the writ of preliminary attachment were supposedly served on the former corporate secretary of LBC Express Inc. on 28 December 2015.
As of the date of this disclosure, LBC Development Corp. and LBC Express Inc. have yet to file their respective answers to the complaint instituted, LBC Express said.
“Each of LBC Express Inc. and LBC Development Corp. are currently determining and assessing the various options and legal remedies available to it and any disclosure being made herein by LBC Express Holdings Inc. is without prejudice thereto,” it said.
“Further, any such disclosure herein of LBC Express Holdings Inc. should not be taken as an admission by any of the defendants in the said case of the validity or propriety of the service of the summons and/or the writ of preliminary attachment or the summons and/or the writ in itself,” the disclosure read.
The summons and writ of preliminary attachment were issued in relation to Civil Case 15-1258. Civil Case 15-1258 is a case for the collection of a sum of money filed by LBC Development Bank Inc. (as represented by Philippine Deposit Insurance Corp.) against certain defendants including LBC Development Corp. and LBC Express Inc., wherein LBC Development Bank Inc. claims it is owed the amount of approximately P1.8 billion representing unpaid service fees.
LBC Express Holdings Inc. (LBC), formerly Federal Resources Investment Group Inc. (FED), was established on July 12, 1993 and used to engage in the manufacture of various adhesives and sealants and other chemicals for hardware, construction, do-it-yourself and industrial applications.
In order to tap potential business opportunities, FED deemed it necessary to broaden the scope of its primary purpose by changing it to that of a holding company.