MANILA, Philippines - The Benitez family has evened the score with businessman Eusebio Tanco’s camp in their ongoing clash over Philippine Women’s University (PWU) with a court order stopping STI Holdings Inc. from seizing the assets of the 96-year-old institution.
In a statement yesterday, the Benitez family said it received a commencement order from the Manila Regional Trial Court (RTC) which would pave the way for a possible approval of a rehabilitation plan for PWU.
When asked for comments, STI Holdings president Monico Jacob said the Manila RTC order did not include the invalidation of the auction of PWU properties as the Benitez family claims.
He said STI Holdings would file a motion for reconsideration.
The Benitez family said Manila RTC’s order invalidated the auction of PWU properties won by Tanco’s STI Holdings last week.
Under the commencement order, the RTC suspends all proceedings in court for the enforcement of all claims against PWU as well as “all actions to enforce any judgment, attachment or other provisional remedies” against it.
It likewise prohibits PWU from selling, transferring and disposing by any means its properties “except in the ordinary course of business.”
In addition, PWU is also prevented from making any payment of its liabilities at the moment.
“Philippine Women’s University the debtor corporation is hereby declared under rehabilitation. The commencement order shall be in full force and effect for the duration of the rehabilitation proceedings unless lifted by the Court, the rehabilitation plan is seasonably confirmed or approved, or the rehabilitation proceedings are ordered terminated,” the order stated.
PWU media director Lydia Benitez Brown said it was now up to the courts to determine a reasonable amount for settlement to all of PWU’s creditors.
The Benitez Group said PWU owes STI Holdings P448 million from loans given since 2011.
The family earlier offered to settle the loan for P644 million, but STI rejected the offer and moved to foreclose PWU’s properties.
PWU chairperson Helena Z. Benitez, a longtime creditor of the university, earlier filed for rehabilitation in a bid to preserve the school’s operations.
The proposed rehabilitation plan of PWU calls for the sale of assets to cover part of PWU’s debts. A payment scheme based on a projected cashflow over a 10-year period will cover the other parts of the debt.
Brown said the rehabilitation plan would enable PWU to meet its legitimate obligations to its creditors without disrupting the conduct of business.
STI Holdings last Thursday said it has been declared by the Regional Trial Court of Manila as the winning bidder of the PWU assets in Manila following foreclosure auctions.
STI Holdings said it won properties along Taft Avenue in Malate, where the PWU school is located, as well as a property located at Pilar Hidalgo Lim St., also in Malate.