Benitez family to take legal action vs STI

MANILA, Philippines - The Benitez family is set to take legal actions against STI Holdings Inc. as it refutes the Tanco-led education firm’s takeover of Philippine Women’s University (PWU).

In a statement, the Benitez family said it is contesting a default notice issued by STI and plans to take legal action to fight what it described as the education firm’s “baseless” claims and “illegal” takeover.

“The Tanco group knows that the Benitez family is contesting this notice of default. Yet ,without even the cursory attempt to engage in dialogue and refusing to entertain such offers of dialogue to discuss the default, the Tanco group is now attempting to take over PWU,” the Benitez family said.

“The Benitez family does not recognize the so-called take-over of PWU, none of its members have

resigned from PWU, and the Benitez family contests the notice of default, both as to amount and as to the factual basis of default,” the statement added.

STI announced on Monday that key members of the Benitez family have reportedly stepped down as members and trustees of PWU, ceding majority control to the listed education company.

STI earlier said it issued a notice of default to PWU and its sister company Unlad Resources Development Corp. earlier this month for allegedly failing to meet all its obligations under their agreements since 2011.

The company said it demanded from PWU a payment of P702 million and Unlad another P223 million and gave them seven days to pay the accumulated amount of P923 million.

“The said notice of default inappropriately and unilaterally demanded payment of the entire amount within a mere seven days. The said notice of default is baseless and procedurally infirm,” the Benitez family said.

“Over the course of three years, the Benitez family realized that Mr. Tanco’s vision to commercialize PWU and JASMS (Jose Abad Santos Memorial School) does not conform to the vision of the founders and the Benitez family’s enduring commitment to education. The entire PWU and JASMS community join the Benitez family and are united in their vow to fight tooth and nail to prevent a predator from taking over their beloved PWU and JASMS,” it added.