PSE Circular for Brokers No. 2967-99

November 22, 1999 PSE CIRCULAR FOR BROKERS NO. 2967-99 November 19, 1999 PHILIPPINE STOCK EXCHANGE, INC. 4th Floor Philippine Stock Exchange Center, Pasig City Attention: Ms. Luisa W. Buenaventura Supervisor, Disclosure Department Gentlemen: This is in reference to your inquiry via fax about the news article captioned "MLRC has 90 days to get new capital" published in the today's issue the Manila Standard. The item quoted in the above mentioned article was only the second (2nd) paragraph of the Order issued by Branch 64 of the Regional Trial Court of Makati City. Such 90-day period is still to be considered by both parties and I quote the order ". . . parties have agreed to consider a 90 day allowance . . ." cdlex Further, the 3rd paragraph of the order states that, and I quote, "For purposes of obtaining the conformity of their respective principals, the counsels asked this court for ample time to secure the same which this Court believes can be obtained in a couple of weeks from today". Thus, said 90-day period mentioned in the article is yet to be finalized as it is still subject to approval by the Board of Directors of the Company to be a valid corporate act. Finally, for purposes of further clarifying the article, we are sending herewith a copy of the Order for your reference. (Annex "A") Hope the foregoing meet your requirements. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller CIVIL CASE NO. 99-1947 MONDRAGON LEISURE & RESORTS CORPORATION, MONDRAGON INTERNATIONAL PHILS. INC., MONDRAGON SECURITIES CORP., & JOSE ANTONIO U. GONZALEZ, petitioners vs. UNITED COCONUT PLANTERS BANK, FAR EAST BANK & TRUST COMPANY & ASIAN BANK CORPORATION, respondents. O R D E R At the summary hearing of this case for the purpose of determining whether the 72-hour Temporary Restraining Order which this Court issued shall be extended, both parties through their respective counsels were in attendance. cdlex After hearing the manifestations of both counsels and upon the Court's initiative, parties have agreed to consider a 90-day allowance to petitioners to enable the latter to continue with their negotiation with investors for the infusion of fresh capital for petitioner corporations. The 90-day period commenced on 1 November 1999 and will terminate by end of January 2000. If by the end of the 90-day period there would be no investors infusing fresh capital, the petitioners would not anymore contest the respondent banks' take over of management in the scheduled February 2000 stockholder's meeting. For the purpose of obtaining the conformity of their respective principals, the counsels asked this Court for ample time to secure the same which this Court believes can be obtained in a couple of weeks from today. In order to preserve the status quo and anticipating that in due time a compromise agreement may be forged between the parties, the Court finds it expedient to extend the 72-hour TRO to twenty (20) days which shall expire on 8 December 1999. Should there be no compromise agreement within the two-week period from today, these court shall proceed to hear the petitioners' prayer for writ of preliminary injunction which is tentatively set on 3 December 1999 at 8:30 o'clock in the morning. Respondents, United Coconut Planters Bank, Far East Bank & Trust Company and Asian Bank Corporation, their employees, agents, representatives and other person confederating with them or acting in their behalf are enjoined to respect the TRO issued by this Court on 12 November 1999 and received by the parties on November 15, 1999. prcd SO ORDERED. City of Makati, November 17, 1999. (SGD.) DELIA H. PANGANIBAN Judge