Yuchengcos sell Pacific Plans to Oñate firm

The Yuchengco Group of Companies, through GPL Holdings, has sold its pre-need unit, Pacific Plans Inc. to businessman and investment banker Noel C. Oñate for about P250 million.

GPL Holdings decided to sell its entire stake in Pacific Plans to Abundance Providers & Investments Corp., a company owned by Oñate.

With the change in ownership, Pacific Plans will be renamed Abundance Providers Entrepreneurs Corp.

GPL Holdings said it decided to sell its entire shareholdings in Pacific Plans to Oñate given his track record of success, strong financial standing and his vision for the company and its planholders. Onate was the founder of budget airlines Asian Spirit.

“Mr. Oñate will be in a better position to provide sustained focus and his undivided attention to the challenges in Pacific Plans,” GPL Holdings said.

The new management also committed to implement the rehabilitation plan approved by the Regional Trial Court.

In 2002, Pacific Plans filed a petition for suspension of debt payments with the local court due to tight liquidity problems. 

GPL Holdings said the final decision to sell was arrived at only after it was satisfied that it had exerted all efforts to address the problems attending its traditional education plans (PEPTrads) through a court-approved rehabilitation plan that conserves its trust fund assets.

An important aspect of the rehabilitation plan is to continue aggressively selling memorial plans and servicing education and pension plans. Pacific Plans is currently studying the prospect of designing education and pension plans which are formulated to take into account all weather-hurdle rates.”

Pacific Plans said there will be a transition team and program that will ensure the seamless turnover to the new management and continuous servicing of claims and other requirements of its planholders.

The company said its new owner believes that the pre-need industry remains a potentially lucrative business inspite of the global economic slowdown and the closure of some pre-need firms.

“Mr. Oñate believes that Pacific Plans can recover with a good business plan, an improvement of the global financial market over time, good conservative management of the trust fund assets, and a proactive planholder management which invites and encourages dialogue and participation in company initiatives which would redound to the health of both the company and the stakeholders it serves,” Pacific Plans said.

“(He) remains optimistic of the industry as a whole. For one, the troubles it is experiencing is a result of the global financial crisis. Hence, given enough time and allowing the market to recover, with a good business plan for each pre-need company, and help of its regulator and the cooperation of the planholders, the pre-need industry will survive the problems besetting it now,” Pacific Plans added.