MANILA, Philippines — Pre-need firm Caritas Financial Plans Inc. (CFPI) may be liquidated over the next few months after the government placed it under receivership.
CFPI is a subsidiary of Caritas Health Shield Inc. (CHSI), which was also placed under receivership in August last year.
CFPI and CHSI are not in any way related to non-government organization Caritas Manila Inc., the social arm of the Catholic Church in the Philippines.
In its latest notice, the Insurance Commission (IC) placed CFPI under receivership effective last month.
Based on IC evaluation, the pre-need firm is suffering from liquidity problems, resulting in the continuous delay and difficulty of paying its obligations.
A notice of stay of order was also issued to allow the firm to consolidate, preserve and protect its assets for the benefit of its members and creditors while undergoing receivership proceedings.
IC also issued a directive to set the rules and parameters in the payment of the pending obligations of CFPI while undergoing receivership proceedings.
Nonetheless, all actions or proceedings for the enforcement of all claims against the company are suspended.
CFPI is prohibited from selling, encumbering, transferring or disposing in any manner any of its properties, as well from making any payment of its liabilities.
The duration of the stay order shall be temporary and may be revoked as soon as the firm is restored to a state of liquidity with sufficient assets to satisfy the claims of its policyholders.
Incorporated in 2007, CFPI had an initial paid-up capital stock of P150 million.
Data from IC showed that CFPI recorded a net loss of P25.01 million as of end-June 2023.
This was the last data available on IC as the pre-need firm did not submit any financial statement for the second half of last year.