Court orders liquidation of Uniwide

A regional trial court has issued an order to liquidate the assets of the Uniwide group, declaring as insolvent the former high-flying retailer which was still pleading for a chance to undergo corporate rehabilitation.

In an order dated Nov. 23, the RTC of Parañaque Branch 258 issued an order to liquidate Uniwide Sales Inc., Uniwide Holdings Inc., Naic Resources and Development Corp., Uniwide Sales Realty and Resources Corp., First Paragon Corp. and Uniwide Sales Warehouse Club.

The court petition for liquidation was filed by creditor Manila Bay Development Corp., through Zamora Poblador Vasquez & Bretana Law Offices.

“Finding the allegation in the instant petition to be sufficient in form and substance, debtors Uniwide Group of Companies are hereby declared insolvent; consequently their assets are directed to be liquidated pursuant to Section 112 Chapter 7 of Republic Act No. 10142 otherwise known as the Financial Rehabilitation and Insolvency Act (FRIA) of 2010,” RTC Judge Noemi Balitaan said in the order.

“The sheriff of this court is directed to take possession and control of all the properties of the debtors, except those that may be exempt from execution,” the RTC said.

This means the assets of the Uniwide group will be sold off to pay liabilities.

Under the FRIA, the Uniwide group led by businessman Jimmy Gow can no longer elevate the case to the Court of Appeals but it can appeal straight to the Supreme Court.

The court’s order is in line with the 2013 order of the Securities and Exchange Commission en banc for the dissolution and liquidation of assets of the Uniwide group. As early as 2009, a hearing panel at the SEC had called for the termination of the Uniwide group’s rehabilitation.

The SEC had said the group was “insolvent” since 2003, which meant that the company had more liabilities than assets.