PWU undergoing rehabilitation, foreclosures stopped for now

MANILA, Philippines – The Benitez family’s beleaguered Philippine Women’s University (PWU) is undergoing financial rehabilitation and is waiting on the court’s decision before making its next move.

PWU entered into a rehabilitation program in March after Dr Helena Benitez, chairperson and long-time creditor of PWU, filed a petition before the Manila Regional Trial Court.

The move was sparked by an escalating feud between the Benitez family, of which Dr Helena Benitez is the matriarch, and Eusebio Tanco of STI Holdings Incorporated following a partnership that had gone sour.

The PWU chairperson submitted a proposed rehabilitation plan to enable the school to meet its obligations to its creditors, including STI Holdings, without disrupting the conduct of its business.

“We are undergoing rehabilitation, the court has ordered the foreclosures to stop, and we’re waiting for the court-appointed receiver to give us his due diligence recommendation,” PWU president Dr Jose Francisco B. Benitez said on Monday, June 8.

The due diligence report is expected sometime in July, unless the court-appointed receiver decides that he needs more time, Benitez said.

The court initially appointed P. Miguel Hernandez as the rehabilitation receiver.

10-year payments

The plan covers a rehabilitation period providing for the sale of assets to cover part of PWU’s debts; the rest will be paid in accordance with projected cash flow over a 10-year period.

The Manila court the PWU on March 20 under rehabilitation after finding Dr. Benitez’ petition for involuntary rehabilitation “sufficient in form and in substance.”

The PWU president said that “we’re going to clear that matter with the court first and then the next step is to clarify it.”

The family has not had any contact with STI Holdings in the interim, Benitez added.

STI bailed out PWU in 2011 when it acquired PWU’s loan with BDO Unibank Incorporated worth P223 million ($4.9 million), and another P198 million ($4.37 million) to Unlad Resources Development Corporation, the corporate arm of the Benitez family. The loans were secured with PWU and Unlad assets worth over P1.5 billion ($33.15 million).

On March 3, it was reported that PWU raised its settlement offer to STI Holdings to P644.44 million ($14.24 million) – higher than the initial offer of P550 million ($12.157 million). Still, the latest offer is below the P923 million ($20.4 million) demanded by STI Holdings.

In a disclosure to the stock exchange on March 18, STI Holdings said it won in the auction sales involving extra-judicial foreclosures of PWU properties along Taft Avenue in Malate, Manila, where the PWU campus is located. – Rappler.com

 US$1 = P 44.24