Prudentialife Plans liquidator targets first tranche to policy holders

MANILA, Philippines - The appointed liquidator of troubled pre-need firm Prudentialife Plans Inc. (PPI) is targeting to release the first tranche of funds to policyholders this quarter.

In a letter to the Insurance Commission (IC), Symecs law proposed the liquidation plan for the PPI trust funds. 

“The IC shall take into valuable consideration the proposals and recommendations of the board of advisers submitted last December 2012,” it said.

Symecs said the liquidation plan contains preliminary computations which the actuarial expert is currently undertaking.

It said the roughly 300,000 placeholders will be informed appropriately of the details of the plan as soon as the IC gives its go-signal.

“We shall advise all placeholders immediately once IC has released the liquidation plan, we endeavor to implement it as efficiently as possible,” it added.

It said if they could not release the trust fund computations this quarter, they would finalize it by next quarter, or before the next school year starts.

“Target release of first tranche for distribution to placeholders is by the end of the first quarter or the second quarter of 2013, in time for enrollment,” it noted.

Last October, the IC ordered the liquidation of PPI after it determined that the pre-need company was insolvent, as all efforts for its rehabilitation failed.

The government has called for a capital infusion on the trust funds supporting PPI’s education, pension and memorial plans.

Formal rehab proposals received earlier this year from Loyola Plans Consolidated Inc., Manila Bankers Life Insurance Corp. (MB Life) and a group of planholders failed to convince regulators.

The IC again called for more proposals in September, resulting in new formal bids from Phil Plans First Inc., Abundance Providers & Entrepreneur Corp. (APEC), Loyola Plans and MB Life. Once again, the IC and its appointed rehabilitator – Symecs Law – rejected all bids.

Meanwhile, PPI filed a petition for review, with an application for a temporary restraining order (TRO) or court injunction, seeking to stop the IC from proceeding with its liquidation order.

The petition for a court injunction was filed last Oct. 19 at the seventh division of the Court of Appeals, or the same day the IC issued the liquidation order.