Eyco creditors warn conservator

The consortium of creditors banks of the Eyco group of companies said the conservator committee of the bankrupt firm will be held liable if the creditors are left without any assets to collect.

The banks led by Philippine National Bank have threatened to file criminal or civil charges against members of the conservator committee if they continue with their alleged illegal disbursement of company funds.

In a letter sent to conservator chairman Amado M. Santiago Jr., the banks through their legal counsels him to "cease and desist from further acting as a member of the now defunct conservator committee, especially in disposing or causing the disposal of the Eyco Group's assets."

Santiago, however, said that the committee continues to discharges its functions because it has not been ordered to turn over the assets of the corporation to a liquidator.

Santiago wants the Securities and Exchange Commission (SEC) to issue guidelines as to whether it should step aside to give way to an SEC-appointed liquidator of the company's remaining assets. He said the receiver is at a lost right now on how to go about the demand of the creditor banks.

Earlier, the creditor banks said the SEC should immediately appoint a liquidator to stop the unauthorized disbursement of company funds.

The bank are concerned that while the SEC disapproved Eyco's petition for suspension of debt payments along with its rehabilitation plan in its order dated Sept. 14, 1999, the conservator committee, which ceased to exist along with the order, continues to dispose of substantial assets of the company.

The creditors have filed an urgent motion to appoint a liquidator that will have the sole authority to oversee the disposal of the company's assets and order payments of all debts. --