MANILA, Philippines - The Benitez family is seeking an involuntary rehabilitation of the Philippine Women’s University (PWU) in hopes of preserving the school’s operations after Eusebio Tanco-led STI Holdings initiated foreclosure proceedings.
The petition was filed by Benitez matriarch Helena Z. Benitez, PWU chairperson and a longtime creditor of the university.
The petition for rehabilitation of PWU is asking the court to issue a commencement order and a stay or suspension order which shall “suspend all actions or proceedings, in court or otherwise, for the enforcement of claims against PWU and against third party mortgagers.”
Benitez said such an order, if granted, would suspend the extrajudicial sale of lands currently occupied by PWU in Manila and Jose Abad Santos Memorial School in Quezon City worth about P1.2 billion.
In her petition, Benitez said PWU’s operations are dependent on the income generated by its campuses.
“The foreclosure and sale of any of the properties will extremely prejudice PWU and endanger its existence or survival since the properties are vital to its operations and rehabilitation,” she said.
Benitez added that the foreclosure proceedings would prevent PWU from paying its debts and will render it insolvent.
“The foreclosure proceedings will also drastically disrupt and stop PWU’s school operations,” she said.
Benitez said PWU currently owes her P33.6 million.
Benitez submitted a proposed rehabilitation plan for PWU, the goal of which is to enable the university to meet its obligations to its creditors without disrupting the conduct of its business.
The plan involves a rehabilitation period providing for the sale of assets to cover part of the debts of PWU, while the rest will be paid in accordance with projected cashflow over a 10-year period.
PWU is a non-stock, not-for-profit institution which has been supported by the Benitez family for the past 96 years.
STI in 2011 offered to help PWU by assuming its debt to BDO of P223 million.
In December 2014, STI initiated default proceedings against PWU which the Benitez family contested in court.