Court rejects mancom for CAP

The Makati Regional Trial Court has rejected the request of College Assurance Plans Phils. Inc. (CAP) planholders for the appointment of a management committee (mancom) that will take over the cash-strapped pre-need firm.

The Makati RTC thumbed down the request on the ground that the Securities and Exchange Commission failed to send a representative during the hearing yesterday.

CAP planholders, represented by lawyer Maricel Lopez, sought the appointment of a mancom to prevent the further dissipation of assets of the pre-need firm.

In the petition, CAP planholders had accused management of funnelling funds to other Sobrepena-owned companies.

Meanwhile, the court has approved CAP’s request for the staggered payment of filing fees relating to its petition for rehabilitation. From the original P36- million assessed filing fee, it is now down to P6 million which will be paid in installments.

In its petition, CAP said it deserves another shot at getting rehabilitated as all it needs is a breathing spell to allow it to come up with a viable recovery program.

CAP said it continues to pay its maturing obligations to planholders despite its present condition.

In its eight-year business plan filed with the court, CAP said its continued ability to meet its obligations is premised on the following assumptions: its dealership license is renewed, it secures additional equity infusion from foreign and local sources, and it streamlines operations by cutting costs.

CAP projects a total trust fund build-up of about P13.56 billion by 2012 with the trust fund achieving a positive balance by 2010.