COVER SHEET

1 6 8 0 6 3
S.E.C. Registration Number

P R Y C E

C O R P O R A T I O N

(Company’s Full Name)

1 7 / F P R Y C E C E N T E R C H I N O

R O C E S A V E N U E M A K A T I C I T Y
(Business Address: No. Street City/ Town / Province)

Atty. Erica P. Encabo 899-4401

Contact Person Company Telephone Number

1 2 3 1 1 7 - C
Month Day FORM TYPE Month Day

Fiscal Year ANNUAL MEETING

Secondary License Type, if Applicable

Dept. Requiring this Doc. Amended Articles Number/Section

393 (as of 2.28.15)

Total No. of Stockholders Domestic Foreign

----------------------------------------------------------------------------------------------------------------
To be accomplished by SEC Personnel concerned

File Number LCU

Document I.D.

Cashier

STAMPS
 SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-C

CURRENT REPORT UNDER SECTION 17

OF THE SECURITIES REGULATION CODE
AND SRC RULE 17 THEREUNDER

1. March 31, 2015

Date of Report (Date of earliest event reported)

2. SEC Identification Number 168063

3. BIR Tax Identification No. 000-065-142-000

4. PRYCE CORPORATION
Exact name of issuer as specified in its charter

5. Province, country or other jurisdiction of incorporation Philippines

6. (SEC Use Only)

Industry Classification Code

7. Address of principal office:

17th Floor PRYCE CENTER
1179 Chino Roces Avenue
corner Bagtikan Street
Makati City

8. Issuer's telephone number, including area code: (+632) 899 4401

9. Former name or former address, if changed since last report:

10. Securities registered pursuant to Sections 8 and 12 of the Code or Sections 4 and 8 of the RSA as
of February 28, 2015:

Title of Each Class Number of Shares of Common Stock

Outstanding

Total Outstanding (all Common) 2,000,000,000

Subscribed and Issued 1,998,750,000

Subscribed (partially paid) 1,250,000

11. Indicate the item numbers reported herein: Item 5.

 Item 5. Legal Proceedings

On March 31, 2015, the Issuer received the Resolution of the Land Registration Authority (LRA)
in Consulta No. 4440. As previously reported, the issue elevated en consulta by the petitioner, the
Register of Deeds of Cagayan de Oro City, is the registrability of the Affidavit of Consolidation executed
on behalf of China Banking Corporation (“China Bank”) pertaining to 36 certificates of title covering
properties foreclosed by China Bank. If the LRA found it registrable, ownership to the properties would
have been transferred to China Bank instead of remaining with Pryce Corporation. The foreclosure took
place prior to the issuance by the Supreme Court en banc of its Resolution in G.R. No. 172302 in
February 18, 2014 upholding the validity of, among others, the Stay Order issued by the rehabilitation
court. The Resolution of the LRA states in part:

“China Bank, being a secured creditor, had all the right to foreclose on
the real estate mortgage, but in light of the Rehabilitation Court’s July 13, 2004
Stay Order having been upheld by the Supreme Court in GR No. 172302, the
registration of the subject Affidavit of Consolidation must necessarily be denied.

“WHEREFORE, premises considered, this Authority holds that the

Affidavit of Consolidation is not registrable.

“SO ORDERED.”

The titles involved cover 34 saleable lots in an upscale subdivision, one (1) raw land property
near residential areas, and a five (5)-hectare portion of a first-class memorial park with saleable
inventories of family estates, garden lots, and lawn lots. All of such titles are located in Cagayan de Oro
City.

We attach a copy of the Resolution for your reference.

SIGNATURE

Pursuant to the requirements of the Securities Regulation Code, the Issuer has duly caused this
report to be signed on its behalf by the undersigned duly authorized for the purpose.

PRYCE CORPORATION
Issuer
By:

Date: March 31, 2015

 arc
rlAR
312015
R,EPUBLIKANG PILIPINAS
KAGAWARAN NG KATARUNGAN
PANGASIWAAN SA PATALAAN NG LUPAIN
. (LAND REGISTRATION AUTHORITY)
EastAvenuecor.NL{ Road
. auezonCity

REGISTER OF DEEDS OF CONSULTANO.4440

CAGAYANDE ORO CITY,
Petitioner.

RESOLUTION
Elevateden consurtaby the Registerof Deedsof cagayanDe oro
city is the issueof
registrabilityof an Affidavit of consolidationdatedMay zo, iooe peter
by s. o"", orir.," ct i,ru
P$!g Corporation("ChinaBank" for brevity)involvingthirty six (36) transfer
certificatesof
title all registered
in the nameofpryce propertilscorporation(ppc foi bievity).

Recordsshowthat ppc mortgagedthe propertiesin favor of china Bank

andregistered
theRealEstateMortgage,with the Registerof Deedsof cagayanDe oro
city on May 31, 2001.
Saidmortgagewas annotatedon the 36 titles underEntry No. 3521g4.
For failure ofppC to
make good on its obligations,china Bank startedforecrosureproceedings
o' tt-," ,no.rgug..
Subsequently, a TemporaryRestraining order datedDecembei7,200{was issuedby the
Regionalrrial court of CDo Branch20 reshainingchina Bank and
its representutiu.,r.o-
proceeding with the foreclosuresaleofthe 36 propertiesofppC. SaidTRo wasunnotat"a
on ttr"
36 titlesunderEntryNo. 12121.

However,after severalmonthsa certificateof Sale(coS), datedMarch

24,2006, was
registered andannotated on the36 titleson April 24,2006underEntryNo.2251.Afterthelapse
or on March 6,2007, ChinaBank presentedfor registrationan
lll..1""l,X:l"j:ytionperiod
Alnoavlt oI Uonsolrdatlon.

BeforerheAffidavit co-ur.d b;^ ppc presented on May 22,2007to the Register

of Deedsa Stavorder daredJury Trolated,2gg4issuedby the Regionaltiid bourt of Makati crty
Branchl3B in SpecialProceedingcase :3,
No. M-5901,entitledn'r rHa MATTER or pgL.rrroN
FOR CORPORATE R-EHABILITATION WITH PRAYER FOR
SUSPENSION OF
PAYMENTS. It is by virtue of this Stayorder that the Registerof Deeds
elevateden consulta
the issueof theregistrabilityofthe subjectAffidavit of Consolidation.

_ Apparently,the registrationofthe cos by china Bank washingedon the Jury

28,2005
Resolutionof the Court of Appealsin CA-GR Cv t'Io. gs+zgwhich re-versed
and sei asidethe
rehabilitation
court'sJuly 13,2004StayOrder.

Appealingthe cA's july 2g, 2005,prycecorporationreceiveda favourable

ruringliom
the Supremecotrt en bancin aResolution,datedFebruaryrg,2014,in
GR No. 172302. rhus,
in an UrgentManifestationand Motion, datedApril 2,2(;r4, submitted
to this Authority, ppc
praysfor the final denialof the registrationof thi subjectAffidavit of
Co".ofiAuti* us'*.tt u,
the declarationof the foreclosureproceedings andCOSas nutl andvoid.

We hold that the Affidavit of Consolidationis not registrablein light

of the Supreme
court En Banc Resolution,datedFebruary18,2014, in GRlo. nn\2,iranni[
tn" ,eu"rs
prayedfor in the secondmotionfor reconslderation
oi lPC, particularlytheiettinj'asiae or trre
Courtof Appeals
whichReversid
theRehabilitationtourt,s
stay
Iltl39:.190i,9i*."""1jh
OrderdatedJuly 13,2004.
 The SupremeCourt in ConsueloMetal Corporationvs.PlantersDevelopment
Banlj GR
No. I52580,June26, 2008,opinedthefollowing:

"In Rizal CommercialBankingCorporationv. Intermediate AppellateCourt(37g

Phil. 10),we held that if rehabilitationis no longerfeasibleandthe assetsof the
corporationare finally liquidated,securedcreditorsshall enjoy preferenceover
unsecuredcreditors, subject only to the provisions of the Civil Code on
conclurenceand preferenceof credits.creditors of securedobligationsmay
pursue their security interest or lien, or they may chooseto abandonthe
preference andprovetheir creditsasordinaryclaims.

"Moreover,Section2248of the Civil Codeprovides:

'Thosecreditswhich enjoy preference
in relationto specificreal
propertyor real rights,excludeall othersto the extentof the value
ofthe immovableor realright to whichthepreference refers.,

"In this case,PlantersBank, as a securedcreditor,enjoyspreferenceover a

specificmortgagedproperty and has a right to foreclosethe mortgageunder
Section2248ofthe civil code. The creditor-mortgageehasthe right to ioreclose
the mortgageover a specificrealpropertywhetheror not the debtor-mortgagor is
under insolvency or liquidation proceedings.The right to foreclose such
mortqage is merelv suspend.edupon the appointment of a management
committeeor rehabilitation receiveror upon the issuanceof a stavoider bv
the trial court However, the creditor-mortgageemay hG-.ight-to-
"xer"G"proceedings
foreclosethe mortgageupon the terminationof the rehabilitation or
uponthe lifting ofthe stayorder.',

China Bank, being a securedcreditorhad all the right to forecloseon the real estate
mortgage,
but in light of the Rehabilitationcourt's July 13,2004Stayorder havingbeenupheld
by the Supremecourt in GR No. 172302,the registrationof the subiect Affidavit of
Consolidation
mustnecessarily be denied.

WHEREFORT', premisesconsidered,this Authority holds that the Affidavit of

Consolidation
is not resistrable.

SO ORDERED.

QuezonCity, Philippines, 2015.

AfiY. JOS S. DIMAIYACANi

l. DIAZTIT

A TRUECOPY
tLay,Ditj/Del Rosario/J1.11/q,v)i02. L I 5

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