Monday, March 24, 2008 [ manilatimes.net ]
THE Supreme Court has dismissed the appeal of the Manila Hotel Corp. (MHC), not only to intervene in the government’s expropriation case involving the controversial Ninoy Aquino International Airport Terminal 3 (NAIA 3), but also to allow the firm to operate the airport facility.
In a three-page resolution dated March 11, the High Court stressed that its December 2005 decision that directed the government to pay P3 billion to the Philippine International Air Terminals Co. (Piatco) was already final as of March 17, 2006, “hence its dismissal of the MHC motion to intervene,”
According to the High Court, its resolution was only in relation to the expropriation case, and does not resolve the Manila Hotel’s motion in relation to the pleading filed by the Lucio Tan-controlled Asia’s Emerging Dragon Corp., which essentially asked the court to compel the government to award the NAIA 3 contract to the latter company.
Manila Hotel also sought to intervene in the government’s expropriation case, which is also being opposed by Ilocos Sur Rep. Salacnib Baterina. The case is still pending resolution at the Supreme Court.
In its petition for intervention, Manila Hotel informed the High Court it had bought 20 percent of Piatco in 2005, and that it had an agreement with Fraport AG Frankfurt Services Worldwide for the purchase of its 30 percent equity shareholdings in Piatco for $200 million.
Manila Hotel, which is controlled by Philtrust Bank owner Emilio Yap, urged the High Court justices to allow it to operate and manage the NAIA 3 for 25 years, with 82.5 percent of the profits to be distributed to various government and charitable institutions.
However, this was opposed by Tan’s camp. According to Eduardo Ceniza, Tan’s counsel, even if Manila Hotel had acquired substantial interest in Piatco, it still does not have a legal interest in NAIA 3, “because corporate rights or assets are owned by the corporation as a separate juridical entity separate and distinct from its shareholders.”
Reports indicated that Manila Hotel had borrowed over P1.1 billion in 2006 to acquire the 20 percent Cheng Yong block in Piatco. -- William B. Depasupil
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