MANILA, Philippines - The Benitez family, which owns the 96-year old Philippine Women’s University, is urging the group of businessman Eusebio Tanco to seriously consider its P550 million settlement offer in a bid to bring to an end a dispute that has lasted several months now.
In a statement issued yesterday, the Benitezes reiterated that the settlement offer was “based on the premise of a fair and just settlement” and that it was not open-ended as claimed by the Tanco-led STI Education System Holdings Inc.
The offer calls for a downpayment of P150 million to be paid within three weeks after an agreement on the settlement is reached, with the balance of P400 million to be paid within six months.
“We believe that the above schedule/terms of payment is a workable, rational, and reasonable solution that shall safeguard the school and at the same time provide STI Holdings a rate of return for its loans to PWU and Unlad,” said Dr. Patrick Caoile, president of Unlad.
“For the good of the school and most especially the students, we have no desire to further escalate the tension between the STI group and the Benitez family,” Caoile added.
Unlad is the corporate arm of the Benitez family while STI Holdings is the holding company within the Tanco group that manages the education business.
STI Holdings had acquired PWU’s loan with BDO worth P223 million in 2011. It also loaned P198 million to Unlad.
Last Dec. 22, however, STI declared the Benitez family in default of its loan and moved to take over a controlling stake in PWU, citing the school owners’ failure to meet obligations under a cooperation deal inked in 2011.
STI demanded the payment of the accumulated amount of P923 million from PWU and its sister firm Unlad Resources or it takes over the school from the Benitezes.
Under the original agreement, STI should have been paid through the conversion of all its loans into 40-percent equity in Unlad, which, in turn, was to absorb all the real estate assets of PWU in a share-for-property swap.
The Benitez group was likewise obliged to raise the authorized capital of Unlad to P1.5 billion to accommodate the infusion and be allowed to issue the shares as payment to STI.
The Benitezes , however, rejected STI’s demand and called the declaration of default “illegal and baseless”, prompting them to elevate their case before a Manila court last month.
PWU media director Lydia Benitez-Brown earlier said the family remains committed to settle its debt obligations to Tanco as part of ongoing efforts to reach an amicable settlement.
Brown said the offer was not made merely for “public consumption” as it is something that the Benitez family fully intends to deliver.
“But as we have repeatedly stated, we shall honor all our commitments to Mr. Tanco and STI but only under fair and just terms,” Brown pointed out.
PWU owns properties valued at around P1.5 billion including the land in Quezon City where JASMS stands. The JASMS property was subject of a proposed joint venture deal between STI and Ayala Land, which the Benitez family rejected.