The Court of Appeals has dismissed the petition of Bayan Telecommunications Inc. and Marifil Holdings Inc. questioning the rehabilitation plan of Express Telecommunications Co. Inc. and seeking to stop its implementation.

The appellate court in a Dec. 20, 2008 ruling threw out BayanTel?s appeal after it failed to comment on Extelcom?s rehabilitation plan within the 10-day prescribed period after the initial hearing of the Manila Regional Trial Court Branch 24, which serves as the rehabilitation court.

The CA also ruled that the Securities and Exchange Commission did not err in approving the rehabilitation plan, which converted Extelcom?s debts into equity without requiring creditors to exercise their deeds of assignment.

Justice Regalado Maambong, chairman of the Court of Appeals? 15 division, penned the decision. It unanimously concurred by Justices Monina Zenarosa and Arturo Tayag. A copy of the CA decision was released over the weekend.

The case originated from the petition for corporate rehabilitation filed by Extelcom creditor Trans Digital.

Judge Antonio Eugenio of the Manila court was named the rehabilitation body, which subsequently named Victor Macalingcag as receiver.

BayanTel, an Extelcom major creditor, and Marifil Holdings, a major stockholder, had asked the court to stop the rehabilitation plan and proposed their own, which they claimed as superior and would put Extelcom to its former viable position.