AACTC has asked the Makati Regional Trial Court to order a suspension of its payments on its debt amounting to $17 million representing a primary debt from the International Finance Corp. (IFC), the investment arm of the World Bank.
Industry sources said the request for a moratorium comes on the heels of reports that two of its subsidiaries had been under fire for lack of reserves. "The shortage of these subsidiaries must have something to do with the holding company’s debt problem."
The Securities and Exchange Commission (SEC) confirmed the request although they said they were not informed officially by AACTC.
"We wrote All Asia (Capital and Trust Corp.) for a copy of their rehabilitation plan including their debt problem solutions. We have also asked them to submit monthly reports of the progress of their rehabilitation," unnamed SEC officials said.
The SEC added that they are also asking for a copy of the deed of pledge made between AACTC and IFC. The deed basically embodies the turnover by AACTC of its shares and those of its subsidiaries to the World Bank investment arm.
The IFC extended a $17-million loan to AACTC aside from controlling seven percent of the holding company worth $4 million. It has also pledged a substantial portion of its stake in All Asia Life.
However, the IFC is reportedly not interested in owning a life insurance company. "It is not their area of expertise," industry sources said.
Meanwhile, the Insurance Commission (IC) will make its final decision next week on the fate of All Asia Life regarding its P243.4-million capital deficiency. All Asia Life has already submitted pertinent documents to prove that it had raised the amount or its equivalent to cover its deficiency.
The life insurer submitted a report stating that it had properties worth P120 million, which would serve as partial coverage. The properties are 291 lots at the Golden Haven Memorial Park reportedly owned by its sister company All Asia Plans Corp., a pre-need company.