It's business as usual, says new Pacific Plans owner

Abundance Providers and Investments Corp. (APIC), controlled by investment banker and Asian Spirit Airlines co-founder Noel Oñate, said it is business as usual for Pacific Plans Inc. even with the change of ownership in the ailing pre-need firm.

APIC director and legal counsel Rita Linda Jimeno assured there would be no disruption in the operations as well as in the servicing of Pacific Plans’ planholders.

“The sale will have no effect on the existing rehabilitation of Pacific Plans. The sale only meant a change in the shareholdings. There is no diminution in the corporate or trust fund assets of Pacific Plans. Only the shares were sold,” she said.

Jimeno said the new management is currently preparing letters to inform its planholders, agents and employees about the sale and the move to a new office on the 19th and 21st floors of Peak Tower on Leviste St., Salcedo Village, Makati City.

She said a transition team and program have been put in place to ensure the continuous servicing of claims and other requirements of Pacific Plans’ planholders based on the provisions of the pre-need firm’s court-approved modified rehabilitation plan.

Jimeno likewise pointed out that the sale of Pacific Plans is a done deal as far as APIC is concerned.  “The sale has already been consummated.  In fact, we have already taken over the company and reported this to the Securities and Exchange Commission and the rehabilitation receiver,” she said.

“Planholders should be happy because the sale would primarily benefit them.  They should be happy because there is a person who is willing to go into a distressed company especially at this time. I hope they will give us a chance first before they react negatively about the deal,” Jimeno said.

Amid concerns the new owner might just flip Pacific Plans, Jimeno pointed out Onate has a track record of success. “He is known for making his company big. He stayed with Asian Spirit for more than 12 years.  When Asian Spirit was sold, it had already established a name for itself,” she said.

Oñate was one of three partners who established Asian Spirit in 1995 and recently sold it for P1 billion. Under his helm, Asian Spirit grew

from two small planes servicing missionary routes in the country to become a competitive international airline servicing the region.

“With our fresh perspective and focus, we will work with our planholders initially to ride out the present economic challenges and then further gain strength and momentum moving forward,” Oñate said.

He said Pacific Plans is in “good financial stead” with consolidated trust fund assets of P12 billion and operating revenues of P1.2 billion.

Oñate said 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 was a pioneer in the pre-need industry before it encountered financial difficulty brought about by skyrocketing tuition and other school fees. 

The return on investment on the trust funds could simply not cope with the staggering increases in tuition and other school fees, resulting in the pre-need firm’s filing for rehabilitation with a local court in 2005.