Facade of Philippine Women’s University at Taft Avenue, Manila. NIÑO JESUS ORBETA/INQUIRER FILE PHOTO
MANILA, Philippines—The Regional Trial Court (RTC) of Manila has dismissed the petition filed by Philippine Women’s University (PWU) and key Benitez family members challenging the election of STI Holdings-nominated boardroom representatives in PWU.
This rendered moot and academic the election contest filed by PWU, matriarch Helena Benitez and PWU president Jose Francisco Benitez against the STI group of businessman Eusebio Tanco.
STI attempted last year to acquire two-thirds control of PWU’s membership and board of trustees. But because Tanco’s group afterwards withdrew its bid to install its representatives, the court did not see any need to proceed with the case.
In a disclosure to the Philippine Stock Exchange on Friday, STI said the RTC had dismissed the lawsuit filed by the PWU group against Tanco, STI president Monico Jacob, Maria Vanessa Rose Tanco, Joseph Augustin Tanco, Martin Tanco, Yolanda Bautista, Jesli Lapus, Teodoro Locsin Jr., Paolo Martin Bautista, Wilfred Racadio and Arsenio Cabrera.
These are the people that STI Holdings would have installed as trustees and members of PWU. STI Holdings appointed these people by virtue of its “step-in” rights as assignee of BDO Unibank Inc.
STI originally wanted to enforce such step-in rights in December 2014 but deferred action in January 2015.
“The case has become moot and academic because we’ve said we’re not interested in enforcing the step-in provision,” Jacob said.
A short statement from the Benitez group said: “The case was dismissed because they backed off and resigned, rendering the case moot.”
The election contest was filed by the Benitez group at the RTC before the Tanco-led group voluntarily withdrew its move to take over two-thirds control of PWU.
In early January, STI said it had deferred its takeover because it would put the welfare of the students ahead of the enforcement of its rights as an unpaid creditor. This was after the group found the university locked down on the first day of classes in 2015.
STI had said that PWU was indebted to it to the tune of P928 million. It declared the Benitez family in default of the loan. The Benitezes challenged the declaration of default as well as the claims of STI.
The Benitez family also offered a compromise settlement below the amount demanded by Tanco, who rejected all these and instead moved to foreclose on Benitez assets in Manila, Quezon City and Davao.
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