STI Education Systems Holdings Inc. has filed another petition for foreclosure, this time on a third property of the Benitez-owned Philippine Women’s University (PWU) in Davao City.
In a disclosure to the stock exchange, STI said the company — together with its wholly owned unit, Attenborough Holdings Corp. (AHC) — has sought another measure from the Regional Trial Court of Davao City to foreclose on parcels of land in Davao registered under the name Unlad Resources Development Corp., a sister company of non-stock PWU.
This is the third property that STI has pushed for foreclosure following earlier petitions to foreclose Unlad’s Quezon City property and the PWU Manila campus.
STI and AHC signed an omnibus agreement in June 2012 to grant Unlad loans in the amounts of P198 million and P221 million for the upgrade of the facilities of PWU.
The loans granted were secured by a mortgage of Unlad’s properties in Quezon City and Davao.
STI’s move to seek extra-judicial help to foreclose on the three properties is due to the Benitezes’ inability to pay its debts to STI and AHC.
The PWU tug-of-war is rooted from the Benitezes’ failure to pay the loans of PWU and its sister firm Unlad to Banco de Oro in 2011, amounting to P230 million. The STI Group settled PWU’s loans, which saved the university from foreclosure, and also funded the operations of the Benitez-owned PWU and Jose Abad Santos Memorial School (JASMS) since 2011, totaling P448 million.
Due to appreciation, interest and cost of money over time, the debt expanded to P923 million from the original P448 million that had been provided by STI.