Prudentialife seeks halt on IC liquidation order

MANILA, Philippines - Prudentialife Plans Inc. (PPI) has filed a petition for review, with an application for a temporary restraining order (TRO) or court injunction, to stop the Insurance Commission (IC) from proceeding with the liquidation order for the pre-need firm.

The petition for a court injunction was filed last Oct. 19 at the seventh division of the Court of Appeals.

 “We have filed with the Court of Appeals a petition for review of the IC’s final order and resolution,” Ambassador Francisco A. Alba, PPI chairman, said.

The petition aims to determine whether or not the IC erred in rejecting the proposed rehabilitation plan of the PPI which would benefit the 300,000 plan holders over a liquidation scenario.

In a letter to the IC dated Oct. 22, Alba also “expressed our vehement objection” with the manner in which the receiver of PPI “hastily carried out through various orders and notices” for the liquidation.

Symecs Law Office was first appointed as receiver then liquidation agent after the Oct.19 order.

The PPI chairman said that the receiver took over the pre-need company’s head officer and promptly terminated all employees. And despite the 30-day evaluation period during the receiver period, “the receiver has already started the liquidation process by terminating all employees and closing all remaining branches.”

Alba claims that the liquidators’ limited experience in operating a pre-need company, poorly serves the planholders.

“The delayed payment of mortuary services has resulted to several mortuaries denying service of our life plan holders,” he added.

Last Oct. 19, the IC ordered the liquidation of PPI after the pre-need company failed to plug the deficit of its trust funds or to bring in an equity partner.

Four rehabilitation proposals – Loyola Plans Consolidated Inc., Manila Bankers Life Insurance Corp., Phil Plans First Inc., and Abundance Providers & Entrepreneur Corp. (APEC) – were received and evaluated by the IC.

After a 10-day evaluation period, all proposals were deemed not fit for rehabilitation leading to a liquidation order.

 “The IC deems it best to order the liquidation of PPI,” Vida T. Chiong, IC deputy commissioner and officer-in-charge, said in the Oct. 19 order.

The IC said that the proposals of Loyola Plans, Apec and PhilPlans worked within the premise that PPI would be liquidated, thus allowing them to acquire specific portfolios instead of the good and bad assets.

Loyola Plans specializes in memorial plans, while PhilPlans has one of the largest education portfolios. APEC, on the other hand, acquired the portfolios of shuttered Pacific Plans Inc.

MB Life sought rehabilitation of PPI but could not make a capital infusion that would rejuvenate the trust funds.