The matriarch of the Benitez family, former senator Helena Benitez, has filed for involuntary rehabilitation of Philippine Women’s University after STI Holdings Inc. of businessman Eusebio Tanco initiated foreclosure proceedings against the school.
“The foreclosure and sale of any of the properties will extremely prejudice PWU and endanger its existence or survival since the properties are vital to its operations and rehabilitation,” Benitez, who is also PWU chairman, said in her petition filed before the Manila Regional Trial Court.
Benitez, who is also a long-time creditor of the university, said the foreclosure proceedings would prevent PWU from paying its debts and render it insolvent.
“The foreclosure proceedings.. will also drastically disrupt and stop PWU’s school operations,” she said.
PWU media director Lyca Benitez-Brown said in an interview Benitez filed for rehabilitation as a long time creditor of the university. PWU owes Benitez P33.6 million.
PWU is a non-stock, not-for-profit institution, which has been supported by the Benitez family for the past 96 years.
Benitez submitted a proposed rehabilitation plan for PWU to enable it to meet its obligations to creditors, including STI, without disrupting the conduct of its business.
It involves a rehabilitation period calling for the sale of assets to cover part of the debts of PWU and other debt payments according to a projected cashflow over a 10-year period.
STI Holdings in February filed separate foreclosure petitions against PWU properties, the Taft and Indiana campuses in Manila, the JASMS Quezon City campus, and a lot in Davao under the name of Unlad Resources Development Corp., the corporate arm of the Benitez family, due the school’s failure to settle its obligations worth nearly P1 billion.
STI Holdings filed the foreclosure proceeding after rejecting a P513-million settlement offer from the Benitez family.
Benitez, in her petition for rehabilitation, asked the court to issue a commencement order and a stay or suspension order which will “suspend all actions or proceedings… for the enforcement of claims against PWU and against third party mortgagers.”
The order, if granted, will suspend the extrajudicial sale of lands currently occupied by PWU in Manila and JASMS in Quezon City worth well over P1.2 billion.
