PET Plans boosts trust fund to P2.9 billion

PET Plans Inc., a pre-need firm controlled by the Ocampo family, has increased its trust fund to P2.9 billion from P2.6 billion a year ago when it sought corporate rehabilitation before a local court.

PET Plans president Lorenzo T. Ocampo said the company’s trust fund grew on account of prudent management and cost-cutting measures.

Ocampo said the company is now awaiting the decision of the Makati Regional Trial Court on the recommendation submitted by rehabilitation receiver Danilo Concepcion, a former Securities and Exchange Commission associate commissioner.

The rehabilitation plan filed by PET Plans with the court involves the conversion of the company planholders’ trust fund into shares of a professionally and independently managed mutual fund.

Under the plan, PET Plans will continue to operate but under a new name, PET Plans 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.