Benitez family raises settlement offer to save PWU

MANILA, Philippines – In an attempt to save the beleaguered Philippine Women’s University (PWU), the Benitez family has raised its settlement offer to STI Holdings of businessman Eusebio Tanco to P644.44 million ($14.62 million).

The latest settlement offer is higher than the initial offer of P550 million ($12.38 million).

In a statement, the Benitez group said it sent a second letter dated February 27, 2015, addressed to STI Holdings President Monico Jacob, proposing the new settlement offer.

The new offer, however, is still below the P923 million ($20.95 million) demanded by STI Holdings.

The adjusted offer is in consideration of STI Holdings’ acquisition of additional shares in Attenborough Holdings Corporations, which is also a creditor of the Unlad Resources Development Corporation, the corporate arm of the Benitez family.

“We again propose that we settle amicably the (PWU) issue,” PWU president Francisco Benitez said in the proposal to STI Holdings.

“Further, your recent purchase of Attenborough has changed the total amounts owed to you, which were not considered in the earlier offer,” he added.

Amended offer

The Benitez family is now proposing a down payment of P150 million ($3.40 million) to be paid within 3 weeks from reaching an agreement, and the balance of P494.44 million ($11.22 million) to be paid within 6 months.

“We believe that the above offer of payment, which assumes a return of 8% per annum plus value added tax (VAT), is a workable, rational, and reasonable solution that shall safeguard the school’s operations from further disruption, and the school’s community from further instability, while at the same time provide STI Holdings a fair rate of return for its loans to PWU and Unlad,” Benitez said.

PWU media director Lydia Benitez-Brown reiterated the family’s commitment to settle all its obligations to STI Holdings.

“This latest offer to settle with STI Holdings is consistent with the family’s commitment to settle all its obligations under fair and just terms. We hope Mr Eusebio Tanco will consider the offer, as we believe it is fair to all parties,” Brown said in a statement.

Brown again emphasized that the Benitez family intends to reach an amicable settlement with STI Holdings and Tanco.

“Reaching an amicable settlement with STI Holdings and Tanco will be very good news for the school, the students and their parents, and for the faculty and staff,” she said.

STI Holdings had acquired PWU’s loan with BDO Unibank Incorporated worth P223 million ($5.06 million) in 2011 and another P198 million ($4.49 million) to Unlad. The loans were secured with PWU and Unlad assets worth over P1.5 billion ($34.03 million).

STI bailed out PWU in 2011. It bought the debt paper from BDO Unibank and provided additional funds to pay for salaries and wages, utilities, repair leaks, retirement pay, upgrade of laboratory facilities and learning, and other operational expenses. It also provided the professional and technical support to establish the financial, accounting, and human resources system PWU needed.

Due to the Benitez group’s failure to settle its obligations, STI Holdings in February filed separate foreclosure petitions against PWU properties: the Taft and Indiana campuses in Manila, the JASMS Quezon City campus, and a property in Davao under the name of Unlad. – Rappler.com

US$1 = P44.08