Makati court approves CAP rehabilitation plan

The Makati City Regional Trial Court (RTC) has granted College Assurance Plan’s petition for rehabilitation.

RTC Branch 149 Judge Cesar Untalan said in a decision dated Nov. 8, 2006, that the court is giving CAP a chance to re-establish itself rather than dissolve the company.

"It is really very difficult to develop and construct but it is very easy to destroy," the ruling said referring to how the pre-need firm suffered financial losses.

CAP’s petition for rehabilitation was originally filed before the sala of RTC Branch 61 Judge Romeo Barza but was transferred to Untalan’s court last July.

The petition was filed in September 2005 because of its "impending inability to service its debts as they fall due, and because, at present, its assets are not sufficient to cover its liabilities."

CAP said its "current financial condition will change with the institution of some changes in its organization, policies, strategies, operations and finances" under a revised rehabilitation plan.

The company lauded the court’s decision and announced that its Fixed Value planholders will be paid according to the original terms upon maturity.

CAP assured that it will also pay traditional or open-ended education plan- holders’ tuition fees for the second semester of 2006-2007 according to the approved terms.

It further assured that it will reimburse planholders for tuition fees paid prior to school year 2006-2007 and will fulfill its commitment to holders of terminated plans as well as those awaiting their return on investment (ROI).

In order to do these, CAP said it will continue to streamline its operations to cut costs, sell corporate and trust fund assets in conjunction with joint venture partners for its medium and longer term obligations.

The pre-need firm’s success will be monitored and checked by the Securities and Exchange Commission (SEC) after three months of implementing the rehabilitation plan as ordered by the court.