MEMBERS of the Benitez family, known for founding the Philippine Women’s University (PWU), on Tuesday said they did not resign from the PWU board, as the rift between the family and STI Holdings Inc. deepens.
“The Benitez family does not recognize the so-called takeover of PWU; none of its members have resigned from PWU; and the Benitez family contests the notice of default both as to amount and as to the factual basis of default,” its statement said.
STI said on Monday it took over the PWU board after key family members resigned.
In STI’s disclosure to the Philippine Stock Exchange, it said those who resigned from the PWU board of trustees included Helena Benitez, Jose Francisco Benitez, Alfredo Jose B. Reyes, Purrisma B. Johannot, Amelia Lourdes B. Reyes and Alfredo Abelardo B. Benitez.
Copies of the resignation letters of the Benitez family members were provided to reporters.
The Benitez family said in a statement that the Tanco group of STI retaliated by serving the notice of default, after the community in, or the Jose Abad Santos Memorial School (JASMS) in Quezon City, resisted the commercialization of the school.
In September STI said it is codeveloping with Ayala Land Inc. the 2.1-hectare grounds of JASMS to create a residential and commercial community with the school at the center.
STI and Ayala Land may spend a combined P2 billion to P3 billion, with STI spending for the new school building, while Ayala Land will be responsible for the residential buildings and a community mall, said Eusebio Tanco, STI chairman.
“Over the course of three years, the Benitez family realized that Mr. Tanco’s vision to commercialize PWU and JASMS does not conform to the vision of the founders and the Benitez family’s enduring commitment to education,” the Benitez family said in a statement.
“The entire that PWU and JASMS community joins the Benitez family in their vow to fight tooth and nail to prevent a predator from taking over their beloved PWU and JASMS,” the Benitez family said.
STI claimed that PWU failed to pay STI some P702.44 million and Unlad Resources Development Corp. (UNLAD) some P223 million, covering interest, penalties, lawyers’ fees and value-added taxes, the Tanco group said in an earlier statement.
STI also claimed it bailed out PWU in 2011, when it was about to be foreclosed by Banco de Oro.
STI said it bought the debt paper from the bank worth P223 million and lent the school another P26.5 million. It also lent Unlad some P198 million.
Under the agreement, STI would be paid through the conversion of all its loans into 40-percent equity in Unlad.
Unlad, meanwhile, absorbed all the real-estate assets of PWU in a share-for-property swap and manage PWU.
In return, the Benitez Group was supposed to raise the authorized capital of Unlad to P1.5 billion to accommodate the infusion and be allowed to issue the shares as payment to STI. Unlad’s capital remains at P20 million.