Sometime in 2015, the Supreme Court ruled that a secured creditor must obtain the approval of the insolvency court before he can foreclose a mortgage.
Briefly, sometime in 1997, Spouses Rommel Naguiat and Celestina Naguiat and S.F. Naguiat Enterprises, Inc. executed several real estate mortgages in favor of the Metropolitan Bank and Trust Company (Metrobank) to secure certain credit accommodations obtained from the latter.
Subsequently, S.F. Naguiat petitioned for insolvency. Then on July 12, 2005, the insolvency court issued an order declaring S.F. Naguiat insolvent.
Thereafter, S.F. Naguiat defaulted in paying its loan. As a consequence, Metrobank foreclosed one of the mortgages but the insolvency court refus…
Read the full article at: https://business.inquirer.net/220502/approval-insolvency-court-needed-foreclose-mortgage