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BCDA seeks higher bond

Posted May 25th, 2012 by Julito G. Rada
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State-run Bases Conversion and Development Authority asked the regional trial court in Baguio City to increase the amount of bond to be posted by Camp John Hay Development Corp. to P3.2 billion from P736 million.

BCDA said in a statement Thursday the increase would cover the total obligations of CJHDevco, owned by businessman Robert John SobrepeƱa, to the government.

Judge Cleto Villacorta III earlier ruled that CJHDevco should post a bond worth P736 million before the writ of preliminary injunction can take effect. CJHDevco’s total arrears to BCDA, however, stands at P3.077 billion.

“The probable damages that the injunction will cause to government will be covered by the bond. This will ensure that the government justly gets what is due it,” BCDA president and chief executive Arnel Paciano Casanova said in a statement.

He said the posting of the higher bond would show CJHDevco’s good faith.

CJHDevco filed the injunction case after it unilaterally rescinded a debt restructuring agreement with the BCDA.

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