D ASIAN HILLS BANK, INC.

(A Rural Bank)
Making a Difference Through Generations
Tel No. (088) 221-4697/ Telefax (088) 813-3990
asianhillsbank@yahoo.com
www.asianhillsbank.com

June 22, 2015

MT. KITANGLAD AGRIVENTURES DEVELOPMENT CORP. (MKADC)
Lurugan, Valencia City, Bukidnon
through:
PAUL XAVIER PERRINE
President and General Manager

PETER MUNGCAL
Finance Manager

APRIL SAN SEBASTIAN

Human Resource Manager

Sir/Madame:
Greetings!
The bank and your company have been working hand in hand in the elevation of the financial condition
of your workers. The bank has extended salary loans to your employees even prior to year 2010 to alleviate the
financial condition of your employees and to enable the latter to afford and finance their basic necessities. In
the past, your company has negotiated with the bank for the improvement of the terms and conditions of the
loans obtained by your employees and the repayment thereof. This negotiation led to the restructuring of the
loan balance of your employees. Last February 14, 2011, a Memorandum of Agreement was entered into by
MKADC through your Vice President for Corporate Management Services Mr. Wenceslao B. Plamus and
Assistance Vice President for Financial Management - Mr. Sotero Rey A. Geralde and the bank through it's
President Mr. Estelito R. Marabe, CPA in which both parties that payroll deductions be made by MKADC from
their employee's salary commencing on January 1, 2011 provided that the monthly amortization be not more
than 25% of the employee's net take home pay with an interest of no more than 20% per annum. The monthly
amortizations deducted by MKADC from the employee's salary shall be remitted to the bank.
One year after the execution of the abovementioned Memorandum of Agreement, representatives from
the bank and your company met at Pryce Plaza Hotel. At that time, the total outstanding balance of all your
employees amounted to more than Php 20, 800, 000.00. As a win-win solution to make the payment of the total
outstanding balance of all your employees less inconvenient and burdensome on your part and to enable the
bank to have a better collection rate, your company through your General Manager and President Paul Xavier
Perrine undertook to make a ONE TIME PAYMENT of P 12, 800, 000.00 as full payment of the total outstanding
balance of P 20, 800, 000.00. Repeated demands were made from that date for your company to make good
with your undertaking but to no avail. The bank's Chief Executive Officer Patrocinio A. Roxas has furnished
your company the Proposed Guidelines for Settlement of your Account through a letter dated April 22, 2013 but
still there was no response from your end. Furthermore, last October 2, 2013 the bank's President Estelito R.
Marabe, CPA sent a letter to MKADC through your President Paul Xavier Perrine requesting the immediate
payment of the compromised amount of P 12, 800, 000.00 but the bank's effort prove futile.
Let it be noted that the bank has given your company ample opportunity to settle your employee's
outstanding balance on their salary loan. We have initially talked to several of your employees and we were
informed that their monthly amortizations were regularly deducted from their salary.
In view of the foregoing, we request a dialogue with your authorized representative as soon as possible.
The Bank hopes to maintain our good relationship with your company before we take action against your
company and/or your employees.
The Bank may be contacted through the undersigned for queries. Thank you and have a good day.

Yours,

ATTY. RIA FAITH N. BISAHAN

LEGAL COUNSEL
OFFICE OF THE LEGAL DEPARTMENT
'D ASIAN HILLS GROUP OF COMPANIES
2nd Floor, Sta. Ana Building, Fortich Street
Mobile Number: 09176294289

With conformity of:

ROY C. BUNA
Vice President for Operations
D' Asian Hills Bank