PET Plans to honor maturing plans until court approves rehab petition

Pre-need firm PET Plans Inc. assured its planholders yesterday that it would continue to honor plans that will mature until its rehabilitation plan is approved by the Makati Regional Trial Court.

This as former Securities and Exchange Commission associate commissioner Danilo Concepcion, the court-appointed receiver for PET Plans, sought more time or until Feb. 28 next year, to submit his final report as to whether or not to approve or amend the conversion program of the pre-need firm.

Under the rules of corporate rehabilitation, the court has a period of 18 months from the date of the filing of the petition to approve the conversion program.

PET Plans filed for corporate rehabilitation with the court last June 22 to allow it to convert its planholders’ trust fund into shares of a professionally and independently managed mutual fund.

In his filing with the court, Concepcion expressed confidence that the conversion program can be successfully implemented, provided certain revisions, modifications and amendments are made, taking into consideration the inputs of planholders, stockholders and management, and by the SEC.

PET Plans president and chief executive officer Lorenzo T. Ocampo said that while the company’s trust fund assets of about P2.85 billion remain liquid and intact, the company "has been successfully moving forward from pre-need to the marketing of various financial products."

"PET Plans has always done the right thing for its planholders, and will honor the trust they continue to give the company, Ocampo said.

"The management of the mutual fund by a very large, experienced and highly reputable bank that can easily be accessed by planholders anywhere in the country should reassure them that their investments are intact and being managed very well," Ocampo further said.

Once the court gives its approval, Ocampo said all pre-need plans will be converted into mutual fund investments.

Under its rehabilitation plan, PET Plans will continue to operate but under a new name, PETPlans Financial Corp., which will set three business hubs — the Network Hub which will sell life, non-life, HMO and memorial park lots; OFW Hub which will provide money transfer and document and parcel delivery services; and Financial Hub to provide loans and credit card facilities.

PET Plans intends to sell the life insurance and HMO products of the Philam Life Group.

Ocampo said all subsequent installments or payments made by amortizing planholders will be deposited directly into the fund, for which additional certificates with the corresponding value will be issued to the planholders.

Once the conversion is completed, holders of fully paid fund certificates may decide to hold on to their investment so that it may continue to grow or may withdraw from their investment.

PET Plans, founded in 1988, has enjoyed a good reputation arising from good service to its planholders to whom it has paid P1.1 billion in benefits over the years.