Glasgow eyes settlement offer

Glasgow Credit and Collection Services, Inc. said the Securities and Exchange Commission (SEC) has approved "in principle" its offer to voluntarily wind up and permanently cease its operations even as it said it is ready to withdraw its motion for the lifting of a cease-and-desist order (CDO) issued by the regulatory agency.

Glasgow president Manuel Roldan Jr. said Glasgow made the settlement offer in a bid to avoid "protracted litigation which could adversely affect the firm's some 9,000 creditors."

Roldan said he is optimistic the SEC would officially act on the offer soon since Glasgow has already started to pay its creditors after the SEC asked the Anti-money Laundering Council to unfreeze the funds of the company in five banks.

Roldan said the payment involving close to P700 million is set to be completed by the middle of December.

Glasgow became the first company to have been issued a cease-and-desist order (CDO) by the SEC in the wake of its crackdown on several investment firms to pay back its creditors. The CDO was issued in July this year following unverified allegations that the firm might have been involved in the sale of securities which was not allowed under the terms of its incorporation.

Glasgow, however, clarified that the contracts it executed with its creditors are not securities but loan documents that do not assume the nature of an investment.

Roldan clarified that the offer to settle "does not in anyway mean an admission of guilt or liability". The firm pointed out that in contrast to other companies suspected of engaging in the so-called Ponzi scheme, Glasgow has not been remiss in the payment of its creditors, nor has it engaged in pyramiding.

Roldan earlier lamented that the firm "may have been caught in the maelstrom of negative public opinion against so-called investment firms". He said, however, the firm "does not fault the SEC for its vigilance". We recognize the need for the sEC to strictly police the local investment industry," he added.

He said the firm supports SEC’s drive versus illegal investment schemes "so that the industry could be cleaned up and legitimate firms could prosper".