MANILA – Philippine Women’s University (PWU) chairperson Dr. Helena Benitez is seeking involuntary rehabilitation of PWU in an attempt to preserve its operations after STI Holdings initiated foreclosure proceedings against the university.
In her petition filed before the Manila Regional Trial Court, the matriarch of the Benitez family said PWU’s operations are dependent on the income generated by its campuses.
“The foreclosure and sale of any of the properties will extremely prejudice PWU and endanger its existence or survival since the properties are vital to its operations and rehabilitation,” she said.
She also said the foreclosure proceedings will prevent PWU from paying its debts and will result to bankruptcy.
“The foreclosure proceedings…..will also drastically disrupt and stop PWU’s school operations,” she said.
The proposed rehabilitation plan for PWU submitted by Benitez involves a rehabilitation period providing for the sale of assets to cover part of the debts of PWU, while the rest will be paid in accordance with projected cashflow over a 10-year period.
It also asks the court to issue a Commencement Order and a Stay or Suspension Order which shall “suspend all actions or proceedings, in court or otherwise, for the enforcement of claims against PWU and against third party mortgagers.”
If the order is granted, the extrajudicial sale of P1.2 billion lands currently occupied by PWU and JASMS will be suspended.
The Benitez family has offered to settle its debt to STI for P644 million, but STI Holdings did not accept the offer, saying it is not in accordance to its contractual obligations.