MANILA, Philippines - Key members of the Benitez Group have reportedly stepped down as members and trustees of Philippine Women’s University (PWU) yesterday, ceding majority control to STI Holdings Inc.
In a statement, Tanco-led STI said Benitez family members have resigned from PWU, leaving the listed education firm with eight of the 10 board seats and 11 of the 15 memberships.
STI said the resignations filed by the Benitez Group members were irrevocable.
“The changeover was made possible after the Benitez Group failed to pay STI for loans through a debt-to-equity conversion that was supposed to have been done way back in November 2011,” STI said.
STI has issued notices of default to PWU and its sister company Unlad Resources Development Corp. earlier this month for allegedly failing to meet all its obligations under their agreements since 2011.
STI demanded from PWU a payment of P702 million and Unlad another P223 million and gave them seven days to pay the accumulated amount of P923 million, or turn over the school’s majority, which was what happened.
The listed education firm said it bailed out PWU in 2011 when it was about to be foreclosed by BDO.
STI said it bought the debt paper from the bank worth P223 million and lent the school another P26.5 million to tide it over financially. The firm said another P198 million was lent to Unlad.
“PWU was deteriorating financially and physically, and was even about to lose its key accreditation because its quality of education had slipped. Enrollment has also been on the decline,” said Monico Jacob, president and chief executive officer of PWU. – With Iris Gonzales