Some PPI planholders still oppose rehab plan

ABS-CBN News

Posted at Feb 09 2009 07:02 PM | Updated as of Mar 13 2009 04:39 AM

Parents Enabling Parents (PEP) Coalition, a group of some traditional planholders of Pacific Plans Inc. (PPI), is still not supporting the firm’s rehabilitation plan even after a dialogue with the new owner, Noel Oñate.

Philip Piccio, the head of PEP Coalition, said they would insist that PPI comply fully with its obligations under the plans that PEP members bought and would not agree to a simple sharing of the proceeds from PPI's investment in National Power Corp. (Napocor) bonds that are maturing in 2010.

However, Piccio said PEP Coalition was willing to study an alternative payment proposal from the new PPI management.

He noted that the plans laid down by Oñate were general and lacked the specifics they needed like payment schemes and sources of funds.

But other PPI planholders were supportive of the PPI rehabilitation plan. They welcomed the Oñate's promise that they would get paid the amount they invested plus some interest once the Napocor bonds mature next year.

One planholder, Virgie Villegas, said they are now more optimistic after having talked to Oñate. She noted that they are much better off than planholders of College Assurance Plan and the Legacy Group, whose owners have not made any assurance they would give their investors' money back.

She also pointed out that many planholders do not agree with PEP Coalition, which was opposing the rehabilitation plan saying it was not realistic or viable.

"With Oñate’s plan, at least we will get something instead of nothing," said Villegas.

Also supporting PPI's rehabilitation plan is the Coordinating Alliance for Reform and Empowerment in the Pre-need Industry. CARE is a group composed mainly of small planholders.

"We are happy to have heard from Mr. Oñate and he presented a good strategy for the company’s turnaround under his 10 point plan," said Dave Diwa, chairman of CARE.

Meanwhile, PPI legal counsel Ronaldo Geron said the new management remains committed to the rehabilitation plan, which is still pending before the Supreme Court.

He noted though that the firm is preparing a more specific proposal for planholders but noted that this would take time.