Parents group cool on Oñate plan for PPI

The Parents Enabling Parents (PEP) Coalition, an organization of parents who bought open-ended educational plans from Pacific Plans Inc., has expressed reservations over the recovery program proposed by the pre-need firm’s new owner Noel Oñate.

Philip Piccio, the head of PEP Coalition, said the group will insist that PPI comply fully with its obligations under the plans they bought from the company and will not agree to a simple sharing of the proceeds of the pre-need company’s investment in National Power Corp. bonds that are maturing in 2010.

However, Piccio said PEP will remain flexible and is willing to study an alternative payment proposal from the new PPI management to see if it is viable.

He noted that the plans laid down by Oñate are still general and still lacks the specifics they need and are thus waiting for more concrete plans that will include payment schemes and how funds will be sourced.

But other PPI planholders who are not members of PEP Coalition are supportive of the PPI rehabilitation plan and welcome the promise of getting paid the amount they invested plus some interest once the NPC bonds mature on 2010 as promised by Oñate.

Virgie Villegas said they are now more optimistic after having talked to Oñate and heard of his plans for the company and its planholders noting that they are much better off than planholders of College Assurance Plan and the Legacy group whose owners have not made any assurance that they will get their money back.

Also supporting the rehabilitation plans is the Coordinating Alliance for Reform and Empowerment in the Pre-need Industry. CARE is a group composed mainly of small planholders.

Dave Diwa, chairman of CARE, said Oñate’s offer of a buyback is welcome and he is glad that this will help planholder recover their investments. He said he is glad that Oñate has committed to comply with his obligations under the rehabilitation plan.   

Meanwhile, PPI legal counsel Ronaldo Geron said the new management remains committed to the rehabilitation plan and will abide by the decision of the court. The firm’s rehabilitation plan is still pending before the Supreme Court.

He noted though that the firm is preparing a more specific proposal for planholders but noted that this will take time since there are as many different situations as there are planholders.