Benitez sweetens debt settlement offer to STI

THE BENITEZ family has submitted an improved debt settlement offer to Tanco-led STI Holdings in an attempt to resolve their squabble over Philippine Women’s University.

In a letter to STI Holdings president Monico Jacob dated Feb. 27 signed by PWU president Francisco Benitez, the group proposed to pay STI an amount of P644.44 million, topping the first payment proposal of P550 million.
 
“We again propose that we settle amicably the (PWU) issue,” Benitez said. “Further, your recent purchase of Attenborough has changed the total amounts owed to you, which were not considered in the earlier offer,” he added.

Attenborough is the holding firm set up by Tanco’s ally Alfredo “Albee” Benitez to extend financial aid to PWU. Before moving to foreclose on Benitez family assets, Tanco consolidated control of this holding firm.

In a press statement on Tuesday, the Benitez family said the new proposal had taken into account a P65-million loan extended by Attenborough to Unlad Resources Development Corp., the corporate arm of the Benitez family.

The family is proposing a downpayment of P150 million to be paid within three weeks from reaching an agreement, and the balance of P494.44 million to be paid within a period of six months.

“We believe that the above offer of payment, which assumes a return of 8 percent per annum plus VAT (value added tax), is a workable, rational, and reasonable solution that shall safeguard the school’s operations from further disruption, and the school’s community from further instability, while at the same time provide STI Holdings a fair rate of return for its loans to PWU and Unlad,” the PWU president said. 

The group reaffirmed the family’s commitment to settle all obligations to STI Holdings.

“This latest offer to settle with STI Holdings is consistent with the family’s commitment to settle all its obligations under fair and just terms. We hope Mr. Eusebio Tanco will consider the offer, as we believe it is fair to all parties,” PWU media director Lydia Benitez-Brown said.

“Our main concern is for the school. Reaching an amicable settlement with STI Holdings and Tanco will be very good news for the school, the students and their parents, and for the faculty and staff,” she added.

Asked about his comment on the improved offer, STI chair Tanco said: “Personally, I doubt whether they have P150 million even for the downpayment. Even assuming that the Benitez family could raise the amount, Tanco said he did not agree with the new terms.

“It’s nearly four years and they have not paid a single cent,” Tanco said. “That’s not acceptable.”

STI Holdings had acquired PWU’s loan with BDO worth P223 million in 2011. It also extended P198 million in additional loans to Unlad. Late last year, STI declared the Benitez family in default of its obligations and demanded P923 million as payment for the loans, an amount that the Benitezes are contesting.