STI refutes Benitez claim on PWU asset foreclosure

MANILA, Philippines - STI Education Holdings Inc. of businessman Eusebio Tanco has refuted the Benitez family’s claim that it has succeeded in preventing the listed education firm from seizing another Philippine Women’s University (PWU) asset.

“Please be advised that Judge Fernando T. Sagun Jr., executive judge of the Regional Trial Court of Quezon City, merely ordered the temporary suspension of the auction sales of the Quezon City properties owned by Unlad Resources Development Corp. until such time that the matter of exclusion of the QC properties subject of the auction sales have been properly determined by the rehabilitation court in connection with the petition for rehabilitation of PWU filed by petitioner Dr. Helena Z. Benitez,” STI Holdings said in a disclosure to the local bourse yesterday.

STI Holdings said Unlad is neither a party nor the subject of any petition for rehabilitation.

The company added that no orders likewise  exist or have been issued by any court of competent jurisdiction restraining or enjoining the sale of the Quezon City properties owned and registered under the name of Unlad.

“As such, STI and Attenborough, as direct creditors of Unlad, should not be prejudiced by the commencement order issued in favor of PWU by the rehabilitation court,” STI Holdings said.

“In addition, the liability of Unlad, as surety, is primary and solidary. A surety can be pursued independently of the debtor and therefore, STI Holdings should therefore be able to foreclose on the QC properties of Unlad in spite of any stay or suspension order in favor of PWU,” the company added.

Under the law, STI Holdings said the subject properties of Unlad, as a surety and third-party mortgagor, are exempted from the coverage of any stay or suspension order issued by any rehabilitation court “unless the same has been determined by a rehabilitation court, upon recommendation by a rehabilitation receiver, to be necessary for the rehabilitation of PWU as debtor.”

“No such written determination by a rehabilitation court and recommendation by a rehabilitation receiver has been made or issued,” STI Holdings said.

“It is therefore the position of STI Holdings that no valid ground exist, which prevents or prohibits the foreclosure of the QC properties owned by Unlad. STI Holdings is therefore prepared to defend its rights to foreclose on the QC properties owned by Unlad before the proper court,” the Tanco-led firm added.

The Benitez family on Wednesday said it has again succeeded in preventing STI from seizing another PWU asset after the Quezon City Regional Trial Court did not proceed with the auction of the Jose Abad Santos Memorial School (JASMS) campus in Quezon City.

JASMS serves as the basic education institution of the 96-year old PWU, majority owned by the Benitez clan.