Benitez matriarch seeks involuntary PWU rehab, suspension of payments

The matriarch of the Benitez family is asking for the involuntary rehabilitation of the Philippine Women’s University (PWU) in a bid to preserve its operations after STI Holdings sought to foreclosure on the university’s assets.

PWU chairperson and a longtime creditor of the university Dr. Helena Z. Benitez said in her petition filed before Manila RTC that PWU’s operations are obviously dependent on the income generated by its campuses.

The petition for Rehabilitation of PWU filed by Benitez asks 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.”

Such an order, if granted, will suspend the extrajudicial sale of lands currently occupied by PWU (in Manila) and JASMS (in QC) worth well over 1.2 Billion, which STI is seeking as a creditor of PWU as payment for the 513 million principal loan it extended starting 2011 (for which it is asking to be paid 1 billion).

“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.

The matriarch also said the foreclo- sure proceedings will 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.

PWU owes Benitez 33.6 million. Benitez submitted a proposed rehabilitation plan for PWU the goal of which is to enable PWU to meet its obligations to its creditors (including STI) without disrupting the conduct of its business.

It 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. In 2011 STI offered to help PWU by assuming its debt to BDO of 223 million but, in December 2014, STI initiated default proceedings against PWU which the Benitez family contested in court.

Despite the Benitez family’s offers to pay STI for the 513 million advanced to PWU (and its sister company Unlad), STI Holdings last month initiated foreclosure proceedings against PWU covering its Taft Ave. and Indiana St. campuses, the Jose Abad Santos Memorial School campus on EDSA, Quezon City, and a property in Davao City.

The JASMS QC property is the site of a condo mall development announced by STI in September 2014, which the Benitez family and the JASMS community opposed.