Judge allows deferment of TPG payments to plan holders

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Judge allows deferment of TPG payments to plan holders
Posted: 3:02 AM | Feb. 17, 2006
Elizabeth L. Sanchez
Inquirer

A JUDGE of the Regional Trial Court of Makati City has allowed pre-need company TPG Corp. to temporarily defer payments to its plan holders and creditors.

TPG sought the court's protection on Feb. 9 to have some breathing space to restructure its debts to plan holders.

It admitted in its court petition that it would be unable to meet its obligations to plan holders.

TPG is the fourth pre-need company to be rocked by financial problems, prompting it to file for corporate rehabilitation. The other firms are Pacific Plans Inc., Platinum Plans, and College Assurance Plan Philippines Inc.

Judge Sixto Marella of the Makati court issued the stay order after he found the TPG petition for rehabilitation as "sufficient in form and substance."

Given the stay order, TPG is prohibited from selling, transferring or disposing any of its properties, and making any payment of its outstanding liabilities.

The court also appointed lawyer Arthur Ponsaran as TPG rehabilitation receiver.

A hearing on the petition is scheduled for April 5.

TPG said claims covering the second semester of school year 2005-2006 threatened to deplete its trust fund.

TPG's trust fund assets are worth P900 million.

As of last month, pending claims for payment of TPG education and pension plans had reached P159.4 million. Of the total, claims for open-ended education plans amounted to P81.9 million.

TPG has 28,903 open-ended plan holders, of which 6,209 are expected to make their claims for the present school semester.

There are also pending claims from pension plan holders, worth roughly P28.97 million.

TPG is also facing claims for payment of pre-terminated education and pension plans worth P46 million.

For school year 2006-2007, claims of open-ended education plan holders are estimated to reach P200 million.

As of December, TPG had cash of P149.9 million. It had total assets of P1.3 billion and total liabilities of P1.2 billion.