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Friday, March 29, 2024

Benitez family urges STI to consider P550-m settlement

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The Benitez family, majority owner of the Philippine Women’s University, on Monday urged STI Education Holdings Inc. of businessman Eusebio Tanco to consider its P550-million settlement offer for the sake of the school and the students.

Unlad Resources Development Corp. president Partick Caoile, in a letter to STI president Monico Jacob, proposed a settlement offer that included a P150-million downpayment within three weeks after an agreement on the settlement was reached.  The balance of P400 million will be paid within six months.  Unlad is the corporate arm of the Benitez family.

“For the good of the school and most especially the students, we have no desire to further escalate the tension between the STI group and the Benitez family. Therefore, we would like to propose……the total amount of P550 million,” Caoile said.

“We believe that the above schedule/terms of payment is a workable, rational and reasonable solution that shall safeguard the school and at the same time provide STI Holdings a rate of return for its loans to PWU and Unlad,” Caoile said.

The P550 million offer is significantly lower than P926 million that STI wants to get from Unlad to cover investments, interest, penalties, lawyers’ fees and value added taxes that the company said it had spent since 2011.

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STI bailed out PWU in 2011 by buying the debt paper 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.

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