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Solidbank Corp. etc. Vs. Gateway Electronics Corp., et al.

SOLIDBANK CORPORATION, NOW KNOWN AS METROPOLITAN BANK AND TRUST COMPANY, Petitioner, versus GATEWAY ELECTRONICS CORPORATION, JAIME M. HIDALGO AND ISRAEL MADUCDOC, Respondents.

G.R. No. 164805 | 2008-04-30

DECISION


NACHURA, J.:

Before the Court is a petition for review on certiorari[1] assailing the Decision dated June 2, 2004 and the Resolution dated July 29, 2004 of the Court of Appeals in CA-G.R. SP No. 73684.

The Facts

In May and June 1997, Gateway Electronics Corporation (Gateway) obtained from Solidbank Corporation (Solidbank) four (4) foreign currency denominated loans to be used as working capital for its manufacturing operations.[2] The loans were covered by promissory notes[3] (PNs) which provided an interest of eight and 75/100 percent (8.75%), but was allegedly increased to ten percent (10%) per annum, and a penalty of two...