The Benitez family, owner of Philippine Women’s University, agreed to give up its properties in Quezon City and Davao City, to end a P1-billion dispute with STI Group of businessman Eusebio Tanco.
STI said in a disclosure to the stock exchange the Benitez group would surrender the site of Jose Abad Santos Memorial School in Quezon City and another property as debt settlement with STI.
It said the move effectively ended the P1-billion legal dispute between the Benitez family and STI.
STI said both parties settled their differences through a dacion en pago arrangement of certain assets controlled by Unlad Resources Development Corp. of the Benitez group.
Under the agreement, the Benitez group will retain ownership of PWU campuses at Taft Ave. and Indiana St. in Manila while the STI Group will get the JASMS Quezon City campus and a property in Davao under the name of Unlad Resources.
STI representatives in turn will resign from PWU Manila, which will remain under the control of the Benitez family.
JASMS will continue to operate in the Quezon City campus along Edsa until the end of school year 2017, after which it will move to a new location.
PWU president Francisco Benitez welcomed the settlement as “a mandate to rebuild PWU and JASMS while remaining true to the educational legacy of our founders.”
Benitez said talks were also underway to open new campuses outside Metro Manila in time for PWU’s centennial celebration in 2019.
The row between Benitez family and STI Group stemmed from a P1-billion debt that the Benitez family allegedly owed STI.
STI Group issued notices of default to PWU and Unlad Resources in December 2014, after the Benitez group allegedly failed to meet its obligations.
STI demanded a payment of close to P1 billion from the Benitez group to cover investments, interest, penalties, lawyers’ fees and value added taxes that the company had spent since 2011.
STI bailed out PWU in 2011, by buying the debt papers from BDO and provided additional funds needed to pay for salaries and wages, utilities, repair leaks, fix campus flooding, and retirement pay, upgrade laboratory facilities and learning and other operational expenses.
The Benitez family’s offered to amicably settle the loan for P644 million. STI rejected the offer and moved to foreclose PWU’s properties.