Finance firm goes under with P500M in obligationsBy Daxim L. Lucas
Philippine Daily Inquirer
A financing firm known for extending lucrative salary loans to public school teachers has ceased operations, leaving unpaid liabilities worth an estimated half a billion pesos to a chain of high networth creditors, the Inquirer has learned.
The company, Credit Solutions Resource and Investment Corp., is controlled by the Makati-based Yabut family and has recently filed a petition for rehabilitation with the Makati Regional Trial Court.
This was confirmed by a ranking official of the Securities and Exchange Commission who —speaking on condition of anonymity—added that a petition for a suspension of payments was also filed by the financing firm to shield its assets from irate investors.
One affected client reached by the Inquirer said the total liabilities of the firm to its creditors stood anywhere between P528 million and P568 million, based on the rehabilitation petition it filed with the Makati RTC’s Branch 149 under Judge Cesar Untalan.
In addition to high networth clients, numerous small investors were also reportedly affected by Credit Solutions’ closure, given that it used to accept “investments” in denominations of as low as P50,000.
“From P50,000, they raised the minimum placement value to P100,000,” the client said, requesting anonymity because his group has a pending legal action against the firm.
Under the financing firm’s scheme, investors were asked to place their funds with the company for either six months or one year, in exchange for a high return on their investment. Clients were issued post-dated checks which they then deposit or cash in at pre-agreed dates.
The invested funds were used by Credit Solutions to extend salary loans to public school teachers under a memorandum of agreement the firm entered into with various teachers’ groups nationwide.
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