SEC opposes Permanent Plans' bid for rehabilitation

MANILA, Philippines – The Securities and Exchange Commission (SEC) has opposed the petition for rehabilitation filed by Permanent Plans Inc. (Permaplans) because of the pre-need firm’s unacceptable alternative payment scheme.

SEC spokesperson Gerard Lukban said the commission is now reviewing Permaplans’ petition in preparation for the comment to be filed with the Makati Regional Trial Court, where the case was filed.

In a statement issued yesterday, the SEC stressed that it never approved Permaplans’ alternative mode of settlement and was even the reason why the pre-need company’s dealer’s license was revoked. “We have not allowed any other mode of settling planholders’ claims,” the statement said.

Lukban cited rule 12.1 of the Pre-Need Rules which states that “ no pre-need plan contract, trust agreement, or other documents pertinent to the registration of plans shall be amended or modified without prior approval of the commission, and such amendment or modification shall neither affect adversely the planholders thereof nor impair any term or condition in the Pre-Need Plan or other related documents.”

“As a player in the pre-need industry, Permaplans is presumed to have full knowledge of the Pre-Need Rules which govern the industry and should comply with the same,” Lukban said.

He also clarified that there was no freezing of the company’s trust fund assets which Permaplans claimed put in a state of paralysis.”

“What the SEC did was merely to direct the trustee banks to secure approval first from the commission before disbursements are made to ensure that any and all withdrawals will only be made for the purpose of servicing the planholders. In order to facilitate the procedure for approval of withdrawals, SEC directed Permaplans to submit its updated masterlist of all its planholders, which to date the company has not yet complied with,” Lukban said.

Lukban said the Commission held several meetings with Permaplans from the time complaints were received from its planholders. “In those meetings, management of Permaplans committed to pay immediately all maturing plans in cash and try to correct its deficiency,” he said.

Permaplans, owned by the Madrigal-Vazquez family, filed its petition for rehabilitation with the court last May 21 in the hope of reviving its operations by selling life plans and settling obligations to planholders on a staggered basis.