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China Banking Corp. Vs. Asb Holdings, Inc. et al.

CHINA BANKING CORPORATION, Petitioner, versus ASB HOLDINGS, INC., ASB REALTY CORP., ASB DEVELOPMENT CORP. (formerly TIFFANY TOWER REALTY CORP.), ASB LAND, INC., ASB FINANCE, INC., MAKATI HOPE CHRISTIAN SCHOOL, INC., BEL-AIR HOLDINGS CORP., WINCHESTER TRADING, INC., VYL DEVELOPMENT CORP., GERICK HOLDINGS CORP., and NEIGHBORHOOD HOLDINGS, INC., Respondents.

G.R. No. 172192 | 2008-12-23

D E C I S I O N


REYES, R.T., J.:

THE Constitutional proscription on impairment of contracts and preference of credits are at the core of this controversy involving the rehabilitation plan of ASB Development Corporation, a debtor of petitioner China Banking Corporation (China Bank).

Before Us is a petition for review on certiorari under Rule 45 of the Decision[1] of the Court of Appeals (CA) upholding the Securities and Exchange Commission (SEC) approval of respondents' corporate rehabilitation plan.

The Facts

In 1999, respondent ASB Development Corporation applied for and was granted a credit line by petitioner China Bank in the...