Rizal Commercial Banking Corp. (RCBC) has asked a Makati court last week to terminate the rehabilitation proceedings of debt-ridden Liberty Telecoms Holdings Inc. (LTHI) and its subsidiaries for failure to implement a court-approved rehab plan.

In its petition filed before Branch 149 of the Regional Trial Court in Makati City, Yuchengco-owned RCBC, a leading creditor-bank of LTHI, also asked the court to proceed with its liquidation to settle P1.7-billion obligation.

LTHI promised the court it will operate a nationwide voice and data network called WiMax, which, it claimed, will be the main service or product in the 10-year rehab plan. “The next 10 years will see the increasing demand for this very promising service, and Liberty would not want to lose the opportunity to supply the needed demand because of its capability, existing technology and frequencies required of the service,” said LTHI. Its holding company, Liberty Broadcasting Network Inc. (LBNI), was awarded in 1995 by the National Telecommunications Commission (NTC) 700-megahertz (MHz) spectrum.

However, RCBC found that the frequency spectrum in which the wireless-broadband service will operate on has been recently reallocated by the NTC to Smart Broadband Inc. (SBI), the wireless-broadband unit of Smart Communications Inc.

“Based on the records of the NTC, it appears that the proposed WiMax network under the 700-MHz frequency, which was claimed by the petitioners to be their existing frequency allocation… cannot be said to be feasible, even possible now. Specifically, it appears based on the NTC records that SBI has applied for and reportedly been allocated and granted the 700-MHz frequency,” RCBC stated in its motion.

“Accordingly, possession, disposition and control of the 700-MHz frequency is indispensable as without it, petitioners cannot set up, maintain and operate the proposed WiMax network considered by the court. It is inevitably clear that petitioners cannot comply with their obligations,” said RCBC.

LTHI also noted that the court should not have approved the rehab plan because LBNI ceased operations since 2000, when its strategic partner, Deutsche Telekom, withdrew its operations from the Philippines.  “Without any operations, employees, customers and new investors for over seven years, its viability as a business enterprise is highly questionable,” said RCBC.

RCBC said LTHI sought court permission in 2005 to undergo rehabilitation to forestall the company’s imminent liquidation. 

SAN Miguel Corp. plans to further increase its ownership in Bank of Commerce (BOC) this year.

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Rizal Commercial Banking Corp. (RCBC) has asked a Makati court last week to terminate the rehabilitation proceedings of debt-ridden Liberty Telecoms Holdings Inc. (LTHI) and its subsidiaries for failure to implement a court-approved rehab plan.

GLOBE Telecom wants the National Telecommunications Commission (NTC) to recall the consent given to Smart Communications Inc. and Pilipino Telephone Corp. (Piltel) allowing them to offer promo offerings on an off-net arrangement.

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