Pacific Plans still in financial bind despite asset transfer from unit

Pacific Plans Inc. (PPI) insisted yesterday that it remains financially distressed even after the transfer of the assets of its defunct subsidiary Lifetime Plans Inc. (LPI)

PPI raised this point in its supplemental petition filed with the Makati Regional Trial Court after the Securities and Exchange Commission (SEC) revoked the corporate license of LPI.

In its supplement petition, PPI stressed that it still foresees the impossibility of meeting its debts when they fall due because the trust funds of the various products of PPI can only be used to pay the benefits of the plans corresponding to it and may not be used to pay the liabilities due to the holders of open-ended traditional education plans.

The Makati RTC has admitted the supplemental petition filed by PPI and set the same for hearing on Oct. 5, 2005.

All creditors and interested parties were directed to file their comments or opposition to the supplemental petition with supporting affidavits and documents not later than 10 days before the date of the hearing.

Meanwhile, PPI spokesperson Maria Jeanette C. Tecson assured LPI planholders that they will continue to be paid because the trust funds corresponding to their plans are intact and can answer for their benefits.

Tecson said PPI’s planned corporate rehabilitation is intended to seek an end to the problem of the open-ended (traditional) education plans by replacing them with fixed value plans and to continue with the business of these type of plans.

As to its open-ended education planholders, Tecson said other options are being pursued and studied by PPI which hopefully, would provide benefit payments.

In a related development, PPI said it understands the demands of its open-ended education planholders to be paid their tuition this coming semester. However, PPI said it is legally constrained from doing so due to the court’s order preventing the pre-need firm from disbursing funds to creditors or planholders.

But PPI said it will explore several options to see how it can address the immediate problems of the availing planholders for the coming semester.