Court upholds SEC order vs Lifetime

Dealing a major setback to Pacific Plans Inc. (PPI), the Makati Regional Trial Court has upheld a Securities and Exchange Commission (SEC) ruling revoking the certificate of incorporation of Lifetime Plans Inc., a spin-off subsidiary of PPI.

In the same order, the Makati RTC has directed PPI to fold in the assets of Lifetime since the latter is now dissolved with the revocation of its registration license. "Since Lifetime is now inexistent, only petitioner PPI remains and all assets of Lifetime now pertain to PPI," the court said.

The Makati RTC noted that the decisions rendered by the SEC are immediately executory.

The Makati RTC has ordered PPI to submit an audited financial statement reflecting the consolidation of the assets and liabilities of Lifetime with PPI within seven days from receipt of order.

For its part, Lifetime expressed disappointment over the court ruling but stressed that it will continue servicing maturing obligations of planholders.

"There’s no need for Lifetime planholders to worry because while PPI has a pending petition for rehabilitation, the court’s stay order does not cover Lifetime’s more than 400,000 planholders," Lifetime spokesperson Samuel V. Torres said.

PPI spokesperson Jeanette C. Tecson, meanwhile, said that with this development, PPI will work closely with the legal team of Lifetime to exhaust all legal remedies and seek out solutions so that it can also ensure that no Lifetime employee or sales agent is displaced.

Tecson said PPI "will seek a reconsideration of the court’s order."

The order was issued following a comment by the SEC to the rehabilitation court that it has already cancelled the certificate of incorporation of Lifetime. The SEC asked the rehabilitation court to dismiss PPI’s petition for rehabilitation since, according to SEC, it is now moot and academic.

In the same order, the rehabilitation court, however, stated that it has yet to rule on the SEC’s claim that putting the two companies back together will result in a financially healthier PPI.

The SEC withdrew the approval of Lifetime’s certificate of incorporation for failure to submit documents to support the pre-need firm’s capitalization.

Among these requirements include the submission of proof of collection of receivables worth over P40 million and transfer of ownership of transportation equipment worth around P6 million.

In the same order, the SEC directed Lifetime’s trustee banks Rizal Commercial Banking Corp., ING Bank N.V., and China Banking Corp. to preserve the trust fund of the pre-need firm until further orders of the commission.