SC stops rehab of CAP
MANILA, Philippines—The Supreme Court has stopped the implementation of the three-year extension and modification of the rehabilitation plan of the cash-strapped preneed firm
The Supreme Court INQUIRER FILE PHOTO
(CAP).
In a resolution released Wednesday, the high court also ordered the CAP to comment on the petition filed by the Securities and Exchange Commission and the Insurance Commission questioning the June 2014 decision of the Court of Appeals.
The appeals court, in its June 2014 ruling, affirmed the decision of the Makati Regional Trial Court in approving CAP’s 2012 revised rehabilitation plan.
CAP sought the extension and modification of its rehabilitation plan after a developer expressed interest to redevelop the preneed firm’s idle real-estate properties into mixed-use commercial-residential condominium projects.
However, the Securities and Exchange Commission and the Insurance said the redevelopment project should not push through because some of the properties were owned by CAP Pension, which is a separate business entity altogether.
The appeals court said the SEC and the IC failed to show that the Makati court abused its discretion in issuing the ruling, prompting the two agencies to go to the high court.
“…It appearing that the implementation of the Revised Rehabilitation Plan will not only cause irreparable and serious damage to the plan holders who, petitioners (SEC and IC) are seeking to protect, but will likewise undermine the authority of petitioner Insurance Commission over CAP Pension, the Court resolves…to issue, effective immediately and continuing until further orders from this court, a temporary restraining order enjoining respondent (CAP) from implementing the assailed decision dated June, 2014,” the high court resolution stated.
In 2005, CAP suffered financial difficulties, which prompted plan holders to terminate contracts and demand return of their money.
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