The Court of Appeals (CA) upheld its 2008 decision that denied the bid of Bayan Telecommunications Inc. (BayaTel) and Marifil Holdings Corporation to prevent the Securities and Exchange Commission (SEC) from enforcing the court-approved rehabilitation plan of debt-ridden Express Telecommunications Co. Inc. (Extelcom).

In affirming its earlier ruling, the CA 15th Division held that BayanTel, an Extelcom major creditor, and Marifil, a major stockholder, failed to raise new arguments in their motion for reconsideration (MR) to convince the appellate court to reverse its decision rendered on December 16, 2008.

In a 21-page resolution penned by Associate Justice Arturo Tayag, the CA Special 15th Division dismissed BayanTel and Marifil’s petition for review of the order issued by Judge Antonio Eugenio Jr., Manila regional trial court (RTC) Branch 24.

The Manila RTC, which serves as the rehabilitation court, earlier approved Extelcom’s rehabilitation by Trans Digital Excel, Inc. (TDE), one of Extelcom’s major creditors.

In ruling against BayanTel and Marifil, the CA held the rehabilitation court did not abuse its authority in approving the Extelcom’s rehabilitation plan.

“Concerning petitioners’ allegation that TDE, the rehabilitation receiver and the court a quo collectively acted in bad faith to defraud them of respective shareholdings and credits in Extelcom, other than by mere conjectures, petitioners were not able to convincingly show the presence of such collective bad faith and grand design to defraud them,” said the CA.

The Appellate Court also held the petitioners filed the petition for review beyond the 15-day reglementary period under Rule 43 of the Rules of Court. It also ruled the SEC did not err in approving the rehabilitation plan, which has converted Extelcom’s debts into equity.