P3.67B unpaid loan: Land Bank asks court to seize firm’s 11 sea vessels
FILE PHOTO
CEBU CITY, Philippines — After failing to settle multiple loans it took out, the state-owned Land Bank of the Philippines (LBP) has asked a Manila court to seize 11 vessels owned by Cebu City-based Asian Marine Transport Corp (AMTC).
LBP claimed that AMTC failed to settle P3.67 billion worth of loans, including from its predecessor UCPB.
In its pleading, LBP sought to take possession of 11 ships that were mortgaged to a series of loans AMTC took out since 2010, while it deliberated the permanent seizure of the company’s assets through foreclosure proceedings.
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“To prevent the mortgaged vessels from leaving beyond the jurisdiction of the Honorable Court or be transported to areas unknown to the knowledge of LBP and the Honorable Court … a warrant for the arrest of the vessels should be issued to ensure that the mortgaged vessels securing AMTC’s indebtedness are immediately taken by the Sheriff for the purpose of extrajudicial foreclosure,” wrote the lawyers for the state lender in their pleading.
“Despite repeated demands for payment, AMTC has failed to settle its outstanding debt, and surrender the possession of the mortgaged vessels, thereby constituting a clear default on the terms of the agreement,” the bank continued.
Aside from AMTC, which is based in Cebu City, included in the complaint is Paul Y. Rodriguez, company president and chief executive officer. Rodriguez ran for Camiguin district representative in May and lost.’
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CDN Digital sought the comment of Rodriguez, but, he refused to issue a statement since the case was now in court.“We will let you know once there’s a court resolution next month,” Rodriguez said in a message sent via email on Wednesday, July 2, 2025.
Meanwhile, the bank sought the seizure and eventual foreclosure of the following AMTC ships: MV Super Shuttle Ferry 5, MV Super Shuttle Ferry 6, MV Super Shuttle Roro 7, MV Super Shuttle Roro 9, MV Super Shuttle Ferry 10, MV Super Shuttle Roro 11, MV Super Shuttle Ferry 12, MV Super Shuttle Roro 14, MV Super Shuttle Roro 16, and MV Super Shuttle Ferry 17.
The bank maintained that it sent five collection letters starting on July 8, 2024, until February 17, 2025, as it considered AMTC in default of its obligations to the lender. The letters likewise stated that it directed AMTC to surrender the mortgaged vessels.
The bank sought the court’s intervention because of the ships’ different locations and varying routes, which “caused gross inconvenience on the part of LBP in foreclosing the vessels.”
To take out a series of loans from the bank, LBP said the company placed the 11 vessels under collateral to secure the obligation.
“The continued retention of the subject vessels by AMTC constitutes an unlawful detention of the said properties, as AMTC has failed to remedy its default or return the collateral in accordance with the stipulated contractual provisions,” LBP said. “While as a matter of right, LBP can foreclose the mortgage on the subject chattels or vessels. However, it is being prevented by the unlawful detention of said vessels.”
Of the 11 vessels, two are docked at Ouano Port in Mandaue City, and the last at Keppel Batangas Shipyard in Bauan, Batangas. The rest are servicing various ports of call in Visayas and Mindanao.
Aside from LBP, AMTC likewise owes the Development Bank of the Philippines some P1.479 billion in loans, which the state lender tagged as “past due” after the company failed to fulfill its repayment schedule.
All in all, AMTC defaulted on nearly P5 billion in loans from LBP and DBP. It is still unclear what legal action the DBP will initiate against the company.
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