The Benitez family of Philippine WomenÆs University scored an initial victory against Tanco-led STI Holdings after a Regional Trial Court in Manila issued a commencement order that suspends, among other items, all debt claims against the 95-year-old university.
A court order dated March 20, 2015 came after a petition for involuntary rehabilitation was filed on March 11 by Dr. Helena Benitez, a creditor of PWU and its longtime chair.
This follows a disagreement between the Benitezes of PWU and STI over the amount of money owed to STI Holdings.
In its filing, the Manila Regional Trial Court said ‘’Philippine Women’s University, the debtor corporation, is hereby declared under rehabilitation.’’
It also directed creditors to file verified notices of claims with the court at least five days before the initial hearing date, set on April 24.
The order also suspends the enforcement of all claims against PWU.
It also barred PWU from making any payment of its liabilities as of the commencement date, which will ‘’retroact to the date of the filing of the petition.’’
The Benitez family, in a statement Monday, welcomed the development, saying this would ensure the continued operations of PWU.
It added that the commencement order would invalidate the auction of PWU properties which was won by STI Holdings when it bid uncontested after filing for foreclosure of the PWU campuses on Taft Avenue and Indiana Street in Manila.
STI had also sought the foreclosure of the Jose Abad Santos Memorial School campus on Edsa, Quezon City and a Benitez family property in Davao City.