Tuesday, May 03, 2005

LEAKAGE...We May Have a Chance of Winning

We just got this leak this morning from one of our YGC informants. It would appear that the YGC operators are not as slick as they should be and may have been relying more on arrogance, calling political favors and insider connections in order to ram through their intentions. We have only had time to verbally verify this with officers at the SEC and the information appears to check out..

"...1.Sometime in August or September 2004, the SEC approved the application of Lifetime Plans, Inc., based on the evaluation and recommendation of the supervising department, the Non-traditional Securities & Instruments Dep't, (NSID) headed by a certain Dir. Emilio Aquino.
2. As in most approvals, certain documentation requirements have to be submitted prior to the actual registration or implementation of the approval. The review of the various submissions is a function of the Company Registration & Monitoring Dep't (CRMD) headed by Dir. Benito Cataran.
3.Under normal circumstances, once the application has been approved, the registration process itself could be purely ministerial especially if simple submissions are involved. However, considering that the Lifetime application involves substantial asset trasfer from one company to another, it took quite sometime for Lifetime to comply with all the requirements of the Registration Dep't.
4. By the time Lifetime has complied with all the requirements, the Pacific fiasco as we know it is already out in the open. The Registration Dep't, instead of simply doing its ministerial function, decided to be prudent and elevated the matter to the Commission en banc. However, the department failed to include any recommendation. (I think the dep't did not want to be blamed and decided to pass on the burden to the commission.) This prompted Chairman Fe Barin to create the ad hoc committee, headed by Atty. Guevarra of the Compliance and Enforcement Dep't, to investigate the whole matter.
Conclusion: While the application of Lifetime has been approved as early as 2004, it appears that the whole process of registration including the transfer of assets HAS NOT BEEN PERFECTED NOR CONSUMMATED YET!!!"

We hope to get written confirmation from the SEC that this is indeed the situation. It would appear that our vigilance and swift organizational response has created this critical break in the case.

We need to storm heaven with our prayers that our SEC officials are not pressured to do something against their conscience. The SEC should do the right thing and not act on any approval.

We may need to organize a rally of support for SEC Chairman Fe Barin for realizing the imminent danger and the adhoc committee that is now tasked to deliberate on the PPI petition.

Assuming that the transfer of assets is disapproved by SEC, then we can probably hope for the reconstitution of PPI to its pre-Augst 2004 state. If the assets revert to PPI due to the SEC's disapproval of the transfer, then we should be able to be made whole again.


55 Comments:

At Tuesday, May 03, 2005 2:54:00 PM, Anonymous Anonymous said...

Let's go for it fellow PEP parents. GOD is on our side. We can win this. Our cause is fair and just.

We need to keep up to political and PR pressure on YGC.

Prayers...............

 
At Tuesday, May 03, 2005 4:01:00 PM, Anonymous Anonymous said...

The Yuchengco's new tact is to spread an SMS text with the following message:

"Yuchengco protecting 400k planholders who will be prejudiced if 16k availing open planholders are paid. Spinoff was legal and for the best interest of great majority of planholders. Yuchengco family did not gain from the spinoff. Definitely no fraud."

They are now trying to exploit the existing fixed planholders by pitting them against the traditional planholders. Shame!!!!

 
At Tuesday, May 03, 2005 4:30:00 PM, Anonymous klu said...

Verify first. It might be a wild goose chase concocted by YGC insiders to distract us.

If this were true, and the way I understand pre-need, traditional and fixed plans have a separate trust fund. This will imply that if our trust fund is indeed deficient(very very likely since Interest Rates <<< Tuition Fee Increase for the past 13 years) , we have to get approval from 400,000 fixed planholders for them to subsidize us. This might be the corner they want us to be for in this scenario, it won't be traditional planholders against YGC but against fixed planholders. 32,000 vs. 400,000? Sounds implausible? Look at SMS text mentioned above.

Also, if your goal is just to make PPI whole WITHOUT a plan. The non-availing planholders like me, will now really be up in arms since their money will be eaten up by availing planholders. (due also to distinct trust funds and no plan to divide equitably the trust fund).

I religously visited this website waiting for your plans that are fair for all planholders. I tried so hard not to believe the other posters stating that Coalition preferred only availing planholders. Now, your true color has come out. I am now for the rehab plan.

If this alone is the Coalition's plan then your article should be changed from "We May Have a Chance of Winning" to "Availing Planholders May Have a Chance of Winning".

 
At Tuesday, May 03, 2005 4:36:00 PM, Anonymous Anonymous said...

1). God works in mysterious ways. He sure is our greatest coalition partner. Hope that we get a confirmation from the SEC about this good news soon.

2). It will be difficult for Yuchengco to succeed in pitting trad planholders vs. fixed value planholders. Many planholders hold both trad plan and fixed value plan. How can they fight themselves? In the end, principles will guide us all.

 
At Tuesday, May 03, 2005 4:58:00 PM, Anonymous Head in the Right Place said...

To KLU,

USE YOUR HEAD!

The fiction of 2 companies was a willful and fraudulent maneuver in the first place. The split should have never even happened because planholders / creditors had to be consulted first before approaching the SEC. Comm. Barin herself expressed her dismay over the fact that the intent to make PPI go into rehab was never disclosed (thereby implying that had that been disclosed, the SEC would have never gone along with it in the first place).

YGC has taken the good assets and liabilities out of PPI and put them into Lifetime and left the rotten ones (mostly in the money losing Napocor) in PPI. Two wrongs do not make a right! Taken from that perspective, you should be more careful in identifying who the real selfish people are.

You do not need to go beyond the simple point that prior to August 2004, PPI was a robust and healthy company. It had some winners, it had some losers...as all companies do. YGC officers and owners have taken fat profits and bonuses out of PPI over the years. They need to plow those back.

 
At Tuesday, May 03, 2005 5:40:00 PM, Anonymous Anonymous said...

the actions taken by ygc is a clear case of an evil plan to take advantage of us planholder, if they were sincere in their action, they would not have hidden all these actions from us, their directors will not resigned en masse, the ygc will not disowned ppi, so to those who still believe on the press releases of ppi, you were not born yesterday, we must fight now or we may not even get a single cent in 2010

 
At Tuesday, May 03, 2005 5:57:00 PM, Anonymous Anonymous said...

To Klu:

You said: "I religously visited this website waiting for your plans that are fair for all planholders. Now, your true color has come out. I am now for the rehab plan."

In fairness to those insisting on YGC to fulfill its contract as promised, the burden to come up with a plan is YGC and PEP's, not any segment of the planholders' community (be they pro- or anti-rehab). And the plan that YGC/PEP needs to offer is one that satisfies their contractual obligations to ALL parties they insured, be they trad or non-trad planholders, be they the 400,000 or the 16,000 (or is it 33,000?).

The burden to satisfy all contracts is YGC's/PEP's. Quite bluntly, it is THEIR headache. After all, we paid them for such headaches, didn't we? And we should unite in a media and legal offensive to ensure that the problem of honoring obligations to all the parties remains THEIRS and NOT ours. Their actuaries, their financial analysts, their accountants, their lawyers...they--not we--should come up with the proper bailout or fund redistribution plans.

[In fact, those of us who felt better at managing funds for our children's futures would have done so on their own without trusting and depositing premium payments to PEP/YGC...still another indication that the obligation to come up with "plans" is PEP's/YGC's.]

If you ask me what "plan" I have to offer, I have none: I know no finance planning, analysis, etc...the same reasons why I entrusted my kids' futures to PEP/YGC. But because I paid my premiums on time and as per contract, I have all the right to *ahem* remain "ignorant", yet demand they fulfill their contract and come up with "plans" at enabling them to do so. As this right can be claimed by all PEP and Lifeline planholders, I hope we can be united in this.

Klu, I hope you do not fall for the YGC ploy at reducing this to a struggle between the 400,000 and the 33,000, or between the availing and the non-availing within the 33,000.

It's between all 433,000 and the YGC.

 
At Tuesday, May 03, 2005 6:41:00 PM, Anonymous Anonymous said...

I think Klu is correct. There is a separate trust fund for each of the plan.

I am due to avail myself of my PepTrad 2 years from now. Although I would very much want to insist that PPI deliver what it promised. I believe that I am level-headed enough to recognize the fact that this is just impossible.

I am just too confused. Maybe the rehab plan is what is best for all of us.

 
At Tuesday, May 03, 2005 6:46:00 PM, Anonymous Anonymous said...

Klu,

It's been argued ad nauseum in this site that the fight is for everybody. Anyway, who says the fixed plans should subsidize the deficiencies of the open-ended plans? That's the argument of PPI President Mr. Garcia. But a check on the FS of PPI shows no deficiencies. Who first implied there is a deficiency? Mr. Garcia. That means we can't trust even the audited FS? What is the coalition stand if there are deficiencies? The Yuchengcos should provide capital infusions in case of any deficiencies, but that’s not the problem anyway, according to Atty. Tecson, right? Atty. Tecson's line was that illiquidity was the problem, not trust fund deficiency, so that’s why rehab is the proposal. Well, checking on the assets show that the illiquidity was MANUFACTURED, caused by the company itself investing in zero-coupon bonds.

So many inconsistencies and doubtful arguments on the part of PPI, that the first order of the day is to first get the facts straight and to unearth the truth! And you really believe Pacific Plans, with all its deception and manipulation and inconsistencies? Give me a break, Klu!

Also, there is no requirement to have a separate trust fund for fixed value educational plans and traditional educational plans. The division is by product line (pension, education, memorial etc.) Even that should not strictly be required if all the products are embedded in one company since separating all the assets into "mental accounts" is suboptimal according to modern portfolio theory. Now, I don’t understand why you say “The non-availing planholders like me, will now really be up in arms since their money will be eaten up by availing planholders. (due also to distinct trust funds and no plan to divide equitably the trust fund).” Where is that coming from? Again, in case you didn’t notice, the coalition stand is that everybody should be paid his or her due. This should not be a problem since there is no deficiency at all, right? Or is there? That’s why you claim that availing planholders will eat up the funds of the non-availing, because you have jumped from intimating there is a deficiency to claiming there is a deficiency. But didn’t Atty. Tecson say illiquidity is the problem?

And this is your basis for going for the rehab plan?

Talk about true colors…

 
At Tuesday, May 03, 2005 9:59:00 PM, Anonymous Anonymous said...

The PPI text msg is out to pit Traditional and Fix PlanHolders to get them to support the rehab plan.

To all fixed planholders: You are lucky, you re not in our position right now. But havent you thought what YGC is capable to doing? Havent you given it a thought that they are capable of corrupting the whole insurance industry with fictitious scenarios to spare them th "burdern" of paying you off when your time to avail comes.

With their money, the YGC is capable of anything. But they should be stopped! So,it would be to your advantage to join our ranks.

That issue about non availing fixed plan holders subsidizing traditional planholders is one such FICTITIOUS SCENARIO pacific is trying to rub into your minds.

Shame on the YGC. Shame on you too, if you bite their sinister plot.

 
At Tuesday, May 03, 2005 10:11:00 PM, Anonymous Anonymous said...

In one of the newspaper articles, it was mentioned...

"That stroke of deregulation was the single biggest cause of the problems PPI and other similarly situated pre-need companies now face. The degree of their present problem is a function of how management reacted then."

Comment:

PPI should give proof that the deregulation or exorbitant tuition increases was the root cause of their problem. Let them publish in the newspapers the actual tuition fees of the schools (by level and by classification). Tignan lang natin kung talagang 20+% ang mga increases. Perhaps, this 20+% increase did happen but just for 1-2 years. Then for the rest of the years (e.g. 10-12 years), the increase was just 5% to 15% only. Kung hindi nila i-publish, then they must be hiding something or just simply lying. Anyway, yan naman ang FORTE nila.

 
At Tuesday, May 03, 2005 10:22:00 PM, Anonymous Anonymous said...

Our chance of winning is bigger than you think.

The SEC and its current officers surely do not want to be known in history as the people responsible for opening the floodgates for pre-need companies to renege on their obligations.

If they allow Pacific to get away with it, other pre-need companies will surely compel the SEC to give them the same privilege to level the playing field.

This will trigger the collapse of an industry whose business is based on TRUST.

If I were the SEC, even if I have already approved Pacific's transfer of assets to other companies, I will do everything to cancel the approval - especially now that I am under the microscope.

 
At Tuesday, May 03, 2005 11:04:00 PM, Anonymous Anonymous said...

If anyone can lend used fax machine, computer or printer for the coalition's office, please send email to -

pacificnoplan@yahoo.com.

 
At Tuesday, May 03, 2005 11:52:00 PM, Anonymous Anonymous said...

As far as I'm concerned, am the least affected since my plan ends this year. The defficiency of Pacific with me is a mere P45,000. But am continuing the fight not for myself but for all the Pacific plan holders. All-as in trad and non-trad!

simply put- there's an obligation that needs to be fulfilled by Pacific Plans and the whole Yuchengco Group since they presented themselves as such.

Fraud?- clearly there was pre-meditating circumstances when they set up lifetime Plans and transfered most of the profitable porfolio.

I know personally several parents who were hoodwinked by Pacific and felt their anguish.

This is a dare to the Yuchengcos:

I dare you to keep Ambassador's name clean as he had built. Not to destroy it in his twilight of his career! There is still time to make amends! Let him have his glory that he deserves.


Quoting the Bible "What have you gained, if you have all the world but have lost your soul".

 
At Wednesday, May 04, 2005 12:14:00 AM, Anonymous Anonymous said...

This comment has been removed by a blog administrator.

 
At Wednesday, May 04, 2005 12:17:00 AM, Blogger Dora said...

This comment has been removed by a blog administrator.

 
At Wednesday, May 04, 2005 12:18:00 AM, Blogger Dora said...

Please do not put unverified statements, especially if it's of a personal nature.

 
At Wednesday, May 04, 2005 2:13:00 AM, Anonymous marc said...

I've had enough of the intrigues of people trying to pit one group of planholders versus another in the site. WE ARE ALL IN THIS TOGETHER, FIXED-BENEFIT AND OPEN ENDED, EVEN THOSE TRANSFERRED TO LIFETIME PLANS. Please read up so that we can all reverse a potentially great injustice done to Pacific Planholders. I'll start my discussion with actuarial reserves.

The ARL or Actuarial Reserve Liabilities are the liabilities recognized by the pre-need firms as the direct counterpart to the Trust Fund Assets. Essentially, these ARLs can be thought of as the present value of the future benefits payments discounted with respect to interest rates, lapsation / persistency, and the timing and amount of the cash flows less the present value of any future trust fund contributions (as defined by the plan model) discounted with respect to interest rates and persistency. In terms of trust fund adequacy, the comparison is always between the ARL and the Trust Funds.

Previously, the pre-need firms tended to view the trust fund contributions they had to make (as defined in the plan model) as their liability but this was always a tenuous position. For the sake of simplicity, say you sold a 10 year zero coupon bond with par value of 1000 at 350. Let’s say that the net realizable yield is 15%; therefore, you had to make a trust fund contribution (TFC) at time zero equal to 247.18 such that in 10 years, the trust fund will equal 1000.

247.18 (1 + 15%)^10 = 1000

The difference between 350 and 247.18, which is 138.36, becomes your profit margin, for now.

The figure of 247.18 as the TFC might look like your liability right now and one might think that contributing this value absolves you from any other liability. However, this is not true at all since your liability is actually 1000 payable in 10 years, so you must have 1000 in the trust fund in 10 years time!

Let’s say the net realizable yields drop to 10% one second after you made the TFC. This means that the trust fund must have 385.54 instead of 247.18 for the trust fund assets to equal 1000 in the new interest rate regime.

385.54 (1 + 10%)^10 = 1000

This is essentially what the ARL does, to serve as the measure of Trust Fund adequacy at any particular point in time. The ARL would have indicated that “you must have 385.54 right now in your Trust Fund to pay for your future liability”! Otherwise, if the ARLs were not tracked, the pre-need firms would have contributed only 247.18 always per plan sold, booking themselves profits of 138.36 per plan sold when in fact, they are already incurring losses of (350-385.54)= 35.54 per plan sold!

This means that if a pre-need company was not tracking it’s ARLs at all and just kept on contributing what the Trust Fund Contributions dictated by the plan model were, then there was a distinct possibility that deficiencies would start to pile upon deficiencies especially in an environment of decreasing interest rates for discounting and improved persistency (reduced lapsation). This means that the pre-need company might be thinking it is indeed very profitable, only to find out that after ARL’s were required to be tracked, they were in fact deficient and in the red for a long time. This in fact happened with a lot of pre-need companies, and it may have happened to Pacific Plans. And here, we are not yet even talking about the volatility of interest rates.

For Pacific Plans, with an actuarial reserve estimated at around 8 Billion pesos for the fixed value plans, and assuming an effective duration of 10 years (average time to maturity), a downward movement of interest rates by 1 percentage point represents an 800 Million peso increase in ARL, such amounts to be infused into the Trust Fund for asset adequacy. At 2 percentage points, the increase in ARL would become 1.6 Billion pesos. PLEASE NOTE THAT THIS HAS GOT NOTHING TO DO WITH OPEN-ENDED EDUCATIONAL PLANS, merely with the effect of discounting on the future cash values, and we are talking about capital infusions running potentially in the hundreds of millions of pesos, perhaps even in the billions of pesos! AND THESE ARE FOR FIXED-VALUE PLANS!

So, for once and for all, it is time to stop blaming the deregulated tuition environment for the woes of Pacific Plans. It is more than that, and even the fixed-value Plans will have had their share of major deficiencies and a need to be propped up. Worse, fixed-value plans might have been propped up using assets that should be earmarked for the open-ended plans, with a view of killing the open-ended plans anyway through ersatz rehabilitation.

Therefore, enough of this argument to leave the fixed-value plans alone since this is a problem of the open-ended plans only! Of course, it's not! Justice and fairness dictate that they be all collated back and I propose that the coalition:
1. Insist that an independent actuary (Fellow of the Actuarial Society of the Philippines) acceptable to both the Yuchengcos and the coalition be chosen to compute the real ARLs of all the plans (Lifetime Plans and Pacific Plans) and
2. An independent, third party valuation all the assets be done to assess what’s up for division, and that a CFA Charterholder be contracted for the valuation, plus to sign off to such asset valuations
3. Have the regulators divide the assets fairly among the open-ended plans and the fixed-value plans, if truly that is what is the Yuchengcos want.

 
At Wednesday, May 04, 2005 2:31:00 AM, Anonymous marc said...

Addendum to my post:

Regarding the illiquidity issue, don't get me started. Obviously, as Atty. Philip said in the Dong Puno Live show, it's of Pacific Plans' own making. To also quote my previous post to rebut Mr. Garcia's argument:
====
... let's all borrow 10 million cash from RCBC, buy a 10 Million par value, deep discount zero coupon bond maturing in 2010 (say, with market value of 9 Million), transfer all of our real assets (save for the zero) to another company, file for rehabilitation for the original company and tell RCBC to accept our 10 Million par value bond maturing in 2010 because we have liquidity problems (it's a zero coupon bond, after all).

Hey, and don't liquidate the 9 million now, after all, you lose 1 million if you get it now so why not wait until 2010 and get the par value.
===

 
At Wednesday, May 04, 2005 7:38:00 AM, Blogger Sef said...

This blog is proving to be generating some good ideas about how to solve this problem, although it is obvious that many lack important data.

It would help everyone if everyone gets access to all the data, facts and figures about this issue. I suggest to the administrators of this blog to open up all the documents that they have, including the financial statements of PPI for everyone to analyze and comment on.

 
At Wednesday, May 04, 2005 7:55:00 AM, Anonymous Anonymous said...

This comment has been removed by a blog administrator.

 
At Wednesday, May 04, 2005 8:57:00 AM, Anonymous Anonymous said...

To the writer of "We should all really pity....."

What you wrote is below the belt. What you wrote is unnecessary. What you wrote is irrelevant.

Please stick to the issues.

 
At Wednesday, May 04, 2005 9:07:00 AM, Anonymous Anonymous said...

President GMA has been curiously mum about the issue which has been raging for weeks now. So have most of our legislators who usually pick up any issue to get mileage points in media. Why the silence? I think it very sad that the people who come seeking our votes and support during elections have completely ignored our plea for their support. Why???? I know that I even raise this question may be naivete on my part, but don't they have consciences at all? ARen't they parents themselves? GMA was a professor, an indication (I hope) that she values education. Now that we have this problem of our children's education at hand, she keeps quiet? I am saddened. Can't she whisper to Yuchengco's ear to pay up?

 
At Wednesday, May 04, 2005 9:33:00 AM, Anonymous Anonymous said...

I have both the traditional and non-trad. plans (now Lifetime). I am supporting the coalition 100%. All the transferring was done through deception, even SEC is claiming they were deceived. If they were sincere why then all the secrecy in moving assets from 1 company to another.

My heart bleeds for those availing at the moment for quite a number of them up to now have not paid the enrollment of their children for they are not sure where to get the money since the tuition support is not enough. I know of a lot of Lifetime plan holders whose sympathetic to us for the simple reason that if it can be done to us what will stop Yuchengco from doing it to them too. Nobody in his right sense will still want to buy their plans even with the change of name.

For those who would want to go along with the rehab plan then go ahead. You have your own website why continue bothering us? Perhaps nobody’s looking at it? The payments you are to receive will come from the maturity of NAPOCOR bonds in 2010. The Govt. is assuming the debts of the said company since its being privatize. This translate to about 500 billion +. Do you honestly believe the Govt. will pay us once it mature? They cant even pay the pension of military personnel which is their life & blood to stay in power. Talk about integrity, Pacific wants to pay us with BASURA. They made suckers out of us once now you want to wait for 2010 for lightning to strike twice. Go ahead make Yuchengcos day!!!

 
At Wednesday, May 04, 2005 9:43:00 AM, Anonymous MR.HONORABLE said...

To all those who commented that it seems the rehab plan is ok or to those who said that they are level headed enough to recognize that it is impossible for Pacific Plans to fulfill there promise (which I do not totally agree with), I just want to point out that while the a rehab plan may be "possible", nonetheless it should not be to the detriment of the policyholiders. Meaning, it should be as close to the value of our plans at present. Eg., average of tuition fee per school category (i.e. exlcusive, non-exclusive, etc.) multiplied by the number of years (i.e., 4 or5 years for college or 4 years for HS or 6-7 yrs for gradeschool). That is what I call a fair proposal. This proposal is still advantageous to Pacific Plans because open-ended will be bailing them out of the future value of the plans (which as claimed by Pacific Plans will be impossible for them to fulfill because of tuition fee deregulation). In the first place, when Pacific Plans realized that open-ended policies will be a problem to them (way back in 1992 as I heard in it many discussions), they could have bought back the plans in 1992 using then its present value. This way they would have saved themselves with escalating tuition fee from 192-2005. What I am saying is, the rehab plan they are offering is definitely acceptable because what is provided in the contract is they will pay whatever the tuition fee is at the time of availment therefore, if they what to opt out of their contract, Pacific Plans should pay it planholders whatever the present value of the plans and NOT the average interest or inflation rate because that is not stated in the contract.
There are small business around, some are able to recoup their investment and some do not. For those who do not, they don't put the burden on their buyers. That is how it goes, there are really some business propositions that fail (just like Pacific Plans' open ended plans) and there are those that prosper (RCBC they say is earning and so are other YGC Companies). But it does not give the institution a right save a business empire at the expense of small people (who worked hard to invest on their business propositions). YGC Group is simply managing their profits but definitely WITHOUT HONOR. May God enlighted these business giants (Yuchengcos) not to rob the small people of their dignity and honor. BE FAIR!

 
At Wednesday, May 04, 2005 9:49:00 AM, Anonymous Anonymous said...

To the moderators:

Please remove the personal attacks on Mr. Yuchengco. Please follow the guidelines that you yourself set. Please check the IP addresses of these posters.

This will further divide the coalition if you don't remove this. We want our fight to be based on issues. By allowing these posts, we will be open again to criticisms of being used by others.

 
At Wednesday, May 04, 2005 9:51:00 AM, Anonymous Mr. HONORABLE, take 2 said...

Please disregard previous comment. This is the correct one.
To all those who commented that it seems the rehab plan is ok or to those who said that they are level headed enough to recognize that it is impossible for Pacific Plans to fulfill their promise (which I do not totally agree with), I just want to point out that while the a rehab plan may be "possible", nonetheless it should not be to the detriment of the policyholiders. Meaning, it should be as close to the value of our plans at present. Eg., average of tuition fee per school category (i.e. exlcusive, non-exclusive, etc.) multiplied by the number of years (i.e., 4 or5 years for college or 4 years for HS or 6-7 yrs for gradeschool). That is what I call a fair proposal. This proposal is still advantageous to Pacific Plans because open-ended planholders will be bailing them out of the future value of the plans (which as claimed by Pacific Plans will be impossible for them to fulfill because of tuition fee deregulation). In the first place, when Pacific Plans realized that open-ended policies will be a problem to them (way back in 1992 as I heard in it many discussions), they could have bought back the plans in 1992 using then its present value. This way they would have saved themselves with escalating tuition fee from 1992-2005. What I am saying is, the rehab plan they are offering is definitely NOT acceptable because what is provided in the contract is they will pay whatever the tuition fee is at the time of availment therefore, if they what to opt out of their contract, Pacific Plans should pay it planholders whatever the present value of the plans and NOT the average interest or inflation rate because that is not stated in the contract.
There are small business around, some are able to recoup their investment and some do not. For those who do not, they don't put the burden on their buyers. That is how it goes, there are really some business propositions that fail (just like Pacific Plans' open ended plans) and there are those that prosper (RCBC they say is earning and so are other YGC Companies). But it does not give the institution a right save a business empire at the expense of small people (who worked hard to invest on their business propositions). YGC Group is simply managing their profits but definitely WITHOUT HONOR. May God enlighted these business giants (Yuchengcos) not to rob the small people of their dignity and honor. BE FAIR!

 
At Wednesday, May 04, 2005 9:54:00 AM, Anonymous Anonymous said...

"Pacific wants to pay us with BASURA. They made suckers out of us once now you want to wait for 2010 for lightning to strike twice."

To Mr. Garcia and the Yuchengcos:

If you say that PPI has liquidity problems and that you are still committed to pay your obligations, why not put your money where your mouth is.

Why not instead of Napocor Bonds, you attach your real properties both here and abroad; your time deposits; your shares in prime companies listed in the PSE and other stock exchanges abroad; etc.

If you do this, maybe, just maybe we can consider your rehab plan.

 
At Wednesday, May 04, 2005 10:33:00 AM, Anonymous Anonymous said...

In response to:

Anonymous said...
Klu,

Also, there is no requirement to have a separate trust fund for fixed value educational plans and traditional educational plans. The division is by product line (pension, education, memorial etc.

This is precisely why those with fixed value education plans (400K) should be alarmed by the depletion of the trust fund for education as this is being ravaged by the peptrad availees.

Let the TF for peptrad take care of peptrad. Don't get from the TF of fixed value plans.

 
At Wednesday, May 04, 2005 10:38:00 AM, Anonymous marc said...

We challenge the Yuchengcos and their family-controlled corporations to do the following as a gesture of good will and good faith:

1. FIRSTLY and IMPORTANTLY, To pullout the rehabilitation plan as as first move towards a real dialogue with all planholders

2. To involve the Coalition in determining the status and condition of Pacific Plans, all the way back from the 1990s to the time Lifetime Plans was incorporated and spun-off, and even beyond.

3. To show the public, that as a further measure of good faith, all DIRECTORS OF AFFECTED COMPANIES RESIGN AND BE REPLACED BY INDEPENDENT DIRECTORS IN ORDER FOR A FACT-FINDING COMMITTEE TO CONVENE
AND FIND OUT THE TRUTH.

Enough of these propaganda and legal maneuvers from the Yuchengco group. We believe in the integrity of Ambassador Yuchengco, and for the interest of all stakeholders and stockholders in all the companies within the YGC, I think the YGC owes it to itself to ferret out the truth and stand by it.

THE TIME TO MOVE IS NOW! THE CLOCK IS TICKING, BUT THERE IS TIME TO MAKE AMENDS! IN THE INTEREST OF THE PLANHOLDERS WHOSE RIGHTS HAVE BEEN TRAMPLED ON, I BEG YOU, WE BEG YOU, AMBASSADOR YUCHENGCO, TO SHOW US ALL AND THE PUBLIC HOW MUCH BIGGER THAN LIFE YOU REALLY ARE, GRACIOUS IN TIMES OF DIFFICULTY, BUT MOST OF ALL, HONORABLE.

 
At Wednesday, May 04, 2005 11:03:00 AM, Anonymous marc said...

"Let the TF for peptrad take care of peptrad. Don't get from the TF of fixed value plans."

How sure are you that the TF of the fixed value plans didn't get from the open-ended plans? The previous argument has already been debunked in this same page; to repeat: EVEN FIXED-VALUE PLANS CAN INCUR AND HAVE INCURRED TREMENDOUS DEFICIENCIES! You don't have to believe this post, just ask the actuaries and the investment professional of pre-need companies doing pure fixed-value plans.

ASK THE RISK MANAGEMENT PROFESSIONALS ABOUT DURATION AND INTEREST RATE RISK, GIVEN THE BILLIONS IN ARL OF THE FIXED-VALUE PLANS! ASK THE ACTUARIES WHAT INTEREST RATES THEY ASSUMED TO COMPUTE THE TRUST FUND CONTRIBUTIONS AND WHAT WERE THE VALUATION DISCOUNT YIELDS USED HISTORICALLY! BY THEMSELVES, THE FIXED-VALUE TRUST FUND DEFICIENCIES CAN RUN IN THE HUNDREDS OF MILLIONS, EVEN IN THE BILLIONS!

So, given the propaganda being fed the public by Pacific Plans, it's not far-fetch to assert that since the open-ended plans were going to be closed (rehab) anyway, the good assets were thus transferred to prop up the deficiencies of fixed-value plans.

AGAIN, enough of the mind games. It's time for the YGC to come clean...

 
At Wednesday, May 04, 2005 11:04:00 AM, Anonymous Anonymous said...

"What you wrote is below the belt. What you wrote is unnecessary. What you wrote is irrelevant."

Really? Those guys are playing hardball and you don't want to know the character of their head honcho? You still want to believe their PR image of their chief? Take off the blinders and see them for what they are. Especially Mr. Integrity.

 
At Wednesday, May 04, 2005 11:11:00 AM, Anonymous Anonymous said...

A note to fellow-bloggers:

Please let us know and practice righteous anger (sticking to facts, non-personal arguments or exposes, proposals of action, etc.) as against just freaking out (personal attacks on Yuchengco as well as on fellow-bloggers here, etc.), as the difference could determine whether this blog will persuade or alienate others regading our cause.

 
At Wednesday, May 04, 2005 2:11:00 PM, Anonymous Anonymous said...

Angelique Lazo of DZAR 1026AM will be interviewing some PEP Coalition mothers tomorrow at around 8:45 a.m.

 
At Wednesday, May 04, 2005 3:12:00 PM, Anonymous Anonymous said...

The "Leakage" is a welcome development as it gives renewed hope to all planholders (regardless of the nature of their plan). This should strengthen our resolve not to allow PPI to enter in a rehabilitation agreement. I am a banker and I have been a witness to a number of companies that have sought refuge under a rehabilitation plan. Believe me, a rehab works to the detriment of the creditor (or investor as in our case...). Rehabilitation is tantamount to biding time...usually with no tangible results.

 
At Wednesday, May 04, 2005 4:36:00 PM, Anonymous TLS said...

What did PPI do WRONG? Let us count the ways.

1. PPI stopped selling these plans in 1992. That was one move that proved critical because it was able to contain the injury. The more of these plans a company has, the worse off it is.
FIRST OF ALL, TRADITIONAL PLANS ARE NOT THE PROBLEM. WHILE IT IS TRUE THAT TUITION FEES WERE DEREGULATED, WHAT NEEDS TO BE ADDRESSED IS THE REVENUE-COST MODEL USED. (Ta-tagalogin ko para madaling maintindihan) DAPAT ISINA-AYOS NG PPI/YUCHENGCO ANG COST MODEL NILA (IBIG SABIHIN, IBINABA DAPAT ANG COMMISSION STRUCTURE AT OPERATING EXPENSES PARA MAS MALAKI ANG MAILAGAY SA TRUST FUND. EVEN IF THEY HAD CONTINUED SELLING, HINDI PROBLEMA IYON KUNG IA-ADJUST ANG COST MODEL. ALSO, THE REVENUE MODEL OR PRICING COULD BE ADJUSTED TO FURTHER COMPENSATE FOR HIGHER TUITION FEES.
ALSO, PPI IN ALL THOSE PAST YEARS HAD HIGH OPEX (OPERATING COST TO REVENUES) RATIOS. THEY SHOULD HAVE REDUCED FIXED OPERATING EXPENSES ALSO, I.E., REDUCED BRANCHES, MANPOWER, ETC. BECAUSE THIS WOULD HAVE SAVED MILLIONS IN THE PAST YEARS.
IN ANY CASE, THEY HAD NO TRUST FUND OR ARL DEFICIENCY UNTIL LAST YEAR SO EVEN FOR THE TRADITIONAL PLANS, WALANG PROBLEMA NA SERBISYOHAN ITO, EXCEPT FOR THE LIQUIDITY PROBLEM NA GAWA-GAWA LANG NILA.

2. PPI has not exercised its right under Section XV of its contract. It could have taken legal cover from this but so far it has not.

THERE IS NO PROVISION IN THE PRE-NEED CONTRACT THAT EXPRESSLY STATES THAT TUITION FEES MUST BE REGULATED OR BE KEPT UNDER THE 10% OR WHATEVER TUITION FEE CAP. WALA! IT DOES NOT EXPLICITLY STATE THAT THE SERVICING OF THE BENEFITS TO PLANHOLDERS IS ANCHORED ON A FIXED, PROJECTED INCREASE IN TUITION FEES OF SO MUCH PERCENT. WALA! THE CONTRACT IS SILENT ON THIS BUT EXPLICITLY STATES THAT PPI WILL PAY OUT THE BENEFITS/TUITION FEES OF THE PLANHOLDER FOR THE SELECTED COURSE OR EDUCATION LEVEL OF THE NOMINEE. IYON MERON! THIS SECTION XV IS TO BE INTERPRETED ONLY IN EVENTS THAT ACTUALLY PREVENT PPI FROM PAYING OUT BENEFITS NOT EVENTS THAT MAKE IT DIFFICULT FOR PPI TO PAY OUT BENEFITS. TUITION FEE DEREGULATION MAY HAVE MADE IT MORE DIFFICULT FOR PPI TO MEET AND SERVE ITS OBLIGATIONS. BUT IT CERTAINLY DID NOT AND DOES NOT PREVENT PPI FROM MEETING AND SERVING ITS OBLIGATIONS. MALAKING DIPERENSYA ANG PANUKALANG BATAS NA IPAGBABAWAL ANG PAGSAGOT SA KARAPAT-DAPAT NA BENEPISYO SA PANUKALANG BATAS NA MAARING MAGPAHIRAP SA KOMPANYANG TULAD NG PPI NA SAGUTIN ANG KARAPAT-DAPAT NA BENEPISYO.

3. PPI put in P1.5 billion to pay the runaway tuition. This is one reason it paid in full all tuition claims in the past 14 years. It has so far sent to school 56,000 scholars and at most 18,000 are not yet availing themselves of the benefits-a modest number by industry standards mainly because of No. 1.

HINDI NAMAN ITO KAHANGA-HANGA DAHIL IYON NAMAN ANG DAPAT LANG NILA GAWIN DAHIL MAY OBLIGASYON SILA AT KATUNGKULILN NA HARAPIN ANG PAGSERBISYO SA PLANHOLDERS. REMEMBER, NEGOSYO ITO. KUNG MALULUGI ANG STOCKHOLDERS NG PPI, PASENSIYA NA LANG. PERO DAPAT HARAPIN ANG LEGAL, FINANCIAL, FIDUCIARY OBLIGATIONS (we’re not even citing the moral and social obligations). HINDI MAARING SABIHIN TAMA ANG ISANG AKSYON DAHIL MARAMI NA ANG “NASERBISYOHAN” AT KONTI NA LANG ANG “MASASAKTAN”. WE ARE NOT TALKING OF NUMBER WEIGHTING AND AVERAGES HERE. KUNG HINDI NABIGAY NG PPI ANG KARAPAT-DAPAT NA BENEPISYO SA KAHIT ISANG PLANHOLDER, MALI AT WALANG MASASABING TAGUMPAY ITO. YOU FAIL JUST ONE PLANHOLDER AND THAT MEANS YOU ARE A FAILURE IN YOUR BUSINESS BECAUSE THAT IS THE WHOLE POINT OF THE BUSINESS.

4. PPI sold instead fixed-value plans, where benefits are defined. PPI sold more than 400,000 of these. But it eventually had to put these in a separate company because the 34,000 open-ended plans continued to be voracious eaters of corporate funds. It separated the two types of plans through a spin-off, a perfectly legal action that is done all over the world. Without this move, the whole body of fixed-value and open-ended plans would have suffered. So why not take steps to keep the 400,000 healthy?
SEE MY REPLY TO NO.3. FIRST, NOTICE THE LANGUAGE – “open-ended plans are voracious eaters of corporate funds”. HINDI NA NILA SINABING “TRUST FUNDS” KASI MALI IYON. THE OPEN-ENDED PLANS HAVE THEIR OWN TRUST FUND WITH NO DEFICIENCIES. SO DO THE FIXED-VALUE PLANS. NOW, BECAUSE HINDI NA NAGBEBENTA NG OPEN-ENDED PLANS, ANG PANGSERBISYO NITO IS TAKEN FROM ITS OWN TRUST FUND, NOT FROM THE TRUST FUND FOR FIXED-VALUE PLANS.
NOW, THEY’VE PROJECTED THAT IF TUITION FEES CONTINUE TO RISE, WITH THE LOW INVESTMENT YIELDS, THE TRUST FUND OF THE OPEN-ENDED PLANS MAY (EMPHASIS ON “MAY” KASI FUTURE ITO – WALA PANG CERTAINTY NA MANGYAYARI) NOT BE ENOUGH TO SERVICE FUTURE AVAILMENTS.
SO, AND THIS IS THE TRUTH, SA SALES NG PAGBENTA NILA NG FIXED-VALUE PLANS, THEY MUST NOW REDUCE THEIR PROFIT MARGIN AND ADD TO THE OPEN-ENDED TRUST FUNDS OR EVEN USE PART OF THEIR PROFIT MARGIN TO SERVE CURRENT AVAILMENTS. THE TRUST FUND FOR FIXED-VALUE PLANS IS SAFE AND INTACT.
SO MALIWANAG NA HINDI KINUKUHAAN ANG TRUST FUND NG FIXED-VALUE PLANS. ANG NAGYAYARI AY NABABAWASAN ANG KITA OR PROFIT MARGIN NG PPI/YUCHENGCO PARA MADAGDAGAN ANG “POSIBLENG” FUTURE KAKULANGAN SA TRUST FUND NG OPEN-ENDED PLANS (TANDAAN DIN NA UNTIL LAST YEAR, WALANG DEFICIENCIES SA TRUST FUND AT ARL ANG PPI).
SO KAILANGAN NILANG BAWASAN ANG COMMISSION SA AHENTE, O BAWASAN ANG OPERATING EXPENSES NILA (SWELDO’T BONUSES NG TOP MANAGEMENT, NO. OF BRANCHES, ETC.) PARA MATUGONAN ANG PAGDAGDAG SA TRUST FUND PARA SA OPEN-ENDED.
SO, IT IS SIMPLY FALSE AND A LIE TO SAY THAT THE WHOLE BODY OF
FIXED-VALUE AND OPEN-ENDED PLANS WILL SUFFER. NO!!! WHAT WILL SUFFER IS YUNG PROFIT MARGIN NILA ON FIXED-VALUE PLAN SALES.

5. Even before this, PPI wrote many schools to buy thousands of scholarships for its beneficiaries and pay in advance the whole four-or five-year courses. Not one agreed to the offer of a 10-percent annual increase. PPI pleaded. It failed.

AGAIN, THIS IS THE SAME AS OFFERING THE BUYBACK OF PLANS FROM PLANHOLDERS OR OFFERING PLANHOLDERS TO MAKE LOANS ON THEIR PLANS. ITO AY MGA STRATEHIYA PARA BAWASAN ANG KAUKULANG OBLIGASYON. LEHITIMO NAMAN ITONG MGA STRATEGY NA GANITO. PERO, AGAIN, PASENSIYA NA LANG AT HINDI GUSTONG TANGGAPIN NG IBANG SCHOOLS O PLANHOLDERS ITO. AGAIN, LET’S FOCUS ON WHAT PPI DID WRONG AND SHOULD HAVE DONE (see no. 4 reply). THEY MISMANAGED OPERATIONS AND EVEN DECLARED DIVIDENDS IN EARLIER YEARS. THEY EXPANDED BRANCHES AND INVESTED IN DUBIOUS INSTRUMENTS.

6. PPI bought back plans but the secondary market, which it has no control of, has brought prices to unreasonable levels.

AGAIN, SIMPLENG PANLOLOKO ULI ITO. SALES IN THE SECONDARY MARKET BOOST NEW BUSINESS OR INITIAL COLLECTIONS BROUGHT IN (ICBI), THE SALES INDICATOR FOR PRE-NEED COMPANIES. SO IT WAS TO PPI’S BENEFIT TO KEEP THE SECONDARY MARKET ALIVE. ALSO, HINDI NAMAN MABUBUHAY ANG SECONDARY MARKET WITHOUT PPI’S CONSENT SINCE ALL THESE SECONDARY SALES WOULD HAVE ADMINISTRATIVE PROCESSING FROM PPI.

7. After the spin-off, PPI was left with the 34,000 plans. It had looked for ways to limit liability on the open-ended plans by offering to swap them with fixed-value plans. But time was not on its side. Enrollment was creeping in fast. It had more than P300 million in cash left and $52-million worth of government-guaranteed bonds that would mature in 2010. Of the 34,000 plans, 16,000 are due for enrollment; the rest, the majority, would be due to file in the coming years and obviously would be disadvantaged if assets are liquidated now. Something must be left for them.

AGAIN, THIS JUST REITERATES THE MISMANAGEMENT THAT PPI/YUCHENGCO DID. HINDI LANG P300 MILLION ANG PERA NG PPI BAGO ILIPAT ANG LAHAT SA LIFETIME. THE $52 MILLION-“WORTHLESS” OF GOVERNMENT BONDS WAS A DUBIOUS SELF-SRVING INTER-COMPANY TRANSACTION ITSELF, NOT AT ALL FOR THE BENEFIT OF THE PLANHOLDERS. WE ARE NOT TALKING ABOUT LIQUIDATING ASSETS FOR THE AVAILING AND NON-AVAILING PLANHOLDERS. WE ARE TALKING ABOUT PPI/YUCHENGCO MAKING AMENDS AND FIGURING OUT A WAY, TO THE POINT OF SELLING ASSETS, CLOSING DOWN BRANCHES, REDUCING THEIR PROFIT MARGIN, HAVING STOCKHOLDERS INFUSE MORE EQUITY, TO SERVICE CONTRACT- AND LEGALLY-STIPULATED BENEFITS OF AVAILING AND NON-AVAILING PLANHOLDERS.

8. So PPI went to court early this month. While it sought for suspension of payment, it asked the court to allow it to use its remaining P341 million in cash to support the tuition needs of the 16,000. PPI knew it had to help pay the tuition because it is enrollment time.

NO. PPI/YUCHENGCO PRE-EMPTED THE SEC AND FAST-TRACKED ITS PETITION FOR SUSPENSION OF PAYMENTS AND PETITION FOR REHAB (THOSE ARE TWO SEPARATE LEGAL ACTIONS) TO FURTHER “PRETEND” THAT ITS HANDS WERE TIED AND HAD NO MORE FUNDS BECAUSE IT KNEW IT HAD TO PAY FULL BENEFITS OF PLANHOLDERS BECAUSE IT IS ENROLLMENT TIME.

9. PPI proposed to return all the premium payments plus seven percent net compounded interest to the 18,000 non-availing plan holders. For the 16,000 who are already availing themselves of the benefits, PPI offered tuition support, which is part of the discounted balance of remaining "availments," plus seven percent net compounded interest that they are entitled to. All these depend on the court approving its rehabilitation plan.

SIEMPRE, KAPAG GUSTO MONG MAKALUSOT, KAILANGAN MAY IBIGAY KANG “PAMPALUBAG-LOOB”. SO PPI/YUCHENGCO ALREADY COMPUTED THAT GIVING THESE PREMIUM PAYMENTS PLUS 7% NET COMPUNDED INTEREST WOULD NOT HURT THEIR POCKETS. AGAIN, THIS PROPOSAL IS BASELESS O WALANG BASEHAN KASI NGA, KUNG HINDI NAGLOKO AT NAGLIPAT NG EARNING ASSETS SA LIFETIME AT HINDI NAGFILE NG REHAB AT SUSPENSION OF PAYMENTS, WALA LAHAT ITONG “PROBLEMA” NA HINDI DAW “KAKAYANIN” NG PPI NA BAYARAN ANG FUTURE AVAILMENTS.

10. If some opponents succeed in blocking the rehabilitation, PPI would likely be forced to Square One with all the problems and no solution, or into liquidation and sell its $52-million worth of bonds before maturity. If sold now, these bonds would fetch P550 million less than if they are redeemed by 2010. This loss, all plan holders must absorb.

BLOCKING THE REHABILITATION PLAN DOES NOT MEAN NA MAPIPILITAN ANG PPI/YUCHENGCO NA ILIQUIDATE ANG NAPOCOR BOND (NA, FOR ALL INTENTS AND PURPOSES, IS WORTH NOTHING ANYWAY SINCE NAPOCOR IS A LOSING GOCC ENTITY). BLOCKING THE REHAB PLAN MEANS PPI/YUCHENGCO WILL HAVE TO (see nos. 4 and 7 above) FIND OTHER MEANS TO FUND PPI. IF THAT MEANS RESTRUCTURING LIFETIME AND PPI TO RETURN ALL EARNING ASSETS TO PPI, THEN SO BE IT. IF THAT MEANS RCBC AND GREPA WILL HAVE TO LEND OR HAVE INTER-COMPANY ADVANCES, SO BE IT. IF THE YUCHENGCOS WILL HAVE TO SELL REAL ESTATE PROPERTIES, CLOSE BRANCHES, REDUCE OPERATING EXPENSES, SO BE IT. BOTTOMLINE IS, HINDI ANG PLANHOLDERS ARE DAPAT MANAGOT SA MISMANAGEMENT NA GINAWA NG PPI/YUCHENGCO.

PPI has done more as an exercise of its obligation, legal and moral, to its plan holders. When the time bomb ticks its last, PPI will be remembered as the company that offered to return the plan holders' money plus more while it still could, and took a lot of beating for a misunderstood but correct decision.

NO. RIGHT NOW, ITS ALREADY LOOKED AT AS THE COMPANY THAT RENEGED ON ITS OBLIGATIONS AND IS BRINGING DOWN NOT ONLY THE PRE-NEED INDUSTRY BUT EVEN AFFECTING ALSO THE LIFE INSURANCE INDUSTRY FOR A WELL-UNDERSTOOD (TRANSPARENTLY MALICIOUS AND FRAUDULENT) AND INCORRECT DECISION. EVERY SINGLE DAY THAT PASSES NA GANITO ANG SITUASYON ONLY REINFORCES THAT. ACTUALLY, ALL GARCIA. TECSON, ET.AL., AND PPI/YUCHENGCO ARE TRYING TO DO NOW IS TO DESPERATELY SAVE FACE AND JUSTIFY THEIR ACTIONS. BUT BELIEVE ME, WALA SILANG KAKAMPI. EVEN IN THE PRE-NEED INDUSTRY. GALIT SA PPI/YUCHENGCO ANG LAHAT FOR MAKING A VERY STUPID AND SELFISH MOVE. RENEGING ON OBLIGATIONS, KAHIT GAANO KAHIRAP GAMPANAN, IS NEVER ACCEPTABLE. BREAKING THE “TRUST” IN A BUSINESS BUILT FULLY ON “TRUST” IS SIMPLY THE BEST REASON TO SAY THAT THESE SUPPOSED “STEWARDS OF OTHER PEOPLE’S MONEY” SHOULD NOT BE ALLOWED TO CONTINUE ON MISMANAGING THE FUTURE OF PLANHOLDERS’ CHILDREN.

TLS

 
At Wednesday, May 04, 2005 5:28:00 PM, Anonymous JP said...

IN RESPONSE TO TLS:

BLOCKING THE REHABILITATION PLAN DOES NOT MEAN NA MAPIPILITAN ANG PPI/YUCHENGCO NA ILIQUIDATE ANG NAPOCOR BOND (NA, FOR ALL INTENTS AND PURPOSES, IS WORTH NOTHING ANYWAY SINCE NAPOCOR IS A LOSING GOCC ENTITY). BLOCKING THE REHAB PLAN MEANS PPI/YUCHENGCO WILL HAVE TO (see nos. 4 and 7 above) FIND OTHER MEANS TO FUND PPI. IF THAT MEANS RESTRUCTURING LIFETIME AND PPI TO RETURN ALL EARNING ASSETS TO PPI, THEN SO BE IT. IF THAT MEANS RCBC AND GREPA WILL HAVE TO LEND OR HAVE INTER-COMPANY ADVANCES, SO BE IT. IF THE YUCHENGCOS WILL HAVE TO SELL REAL ESTATE PROPERTIES, CLOSE BRANCHES, REDUCE OPERATING EXPENSES, SO BE IT. BOTTOMLINE IS, HINDI ANG PLANHOLDERS ARE DAPAT MANAGOT SA MISMANAGEMENT NA GINAWA NG PPI/YUCHENGCO.

PPI is a separate company ,all its liabilities are self contained. It is like asking Meralco to stop increasing prices and just ask ABS CBN to use its profits to subsidize electrical consumers or asking ABS CBN to bailout Maynilad .

Personally, I still like my options better with the rehab plan. Since you are so confident on your answer, then can I "sell" you my plan at a small premium to PPI's rehab offer? You can get 3x this amount if your number 10) comment is correct.

 
At Wednesday, May 04, 2005 6:06:00 PM, Anonymous Anonymous said...

We should not lose hope and we should not agree to anything that PPI will offer us unless it is to pay us what is due. As stated in the agreement which the planholders signed, they "GUARANTEE" that they will pay the full amount due the planholders.

We hope that there will be lawyers who can give their free services to the planholders for a class suit to be filed against PPI since not all planholders have the resources to pay for tuition anymore, what more lawyers fee.

We have to be one in this cause to be able to get what is due us for the sake of our children's future.

 
At Wednesday, May 04, 2005 6:10:00 PM, Anonymous Anonymous said...

marc said:

"The difference between 350 and 247.18, which is 138.36, becomes your profit margin, for now."

can anyone tell me what's wrong with this?

 
At Wednesday, May 04, 2005 7:12:00 PM, Anonymous TLS said...

just to clarify remarks made by this jp,

Some people cannot understand and must be given simpler explanations. Of course, "PPI is a separate company ,all its liabilities are self contained". Anyone who has worked in conglomerates knows that it is all simply portfolio management. It may not be as stupid as "asking Meralco to stop increasing prices and just ask ABS CBN to use its profits to subsidize electrical consumers or asking ABS CBN to bailout Maynilad" but certainly the individual companies within a conglomerate are managed that way - funds from one company may support those that are doing poorly. In any case, the point is that PPI/Yuchengco should not even have gone into proposing a rehab for a "manufactured" liquidity problem.

And please, for those who accept PPI/Yuchengco's story and believe they have "options better with the rehab plan" nobody's stopping you. No one has to tell me or say that they don't believe in my analysis because, at the end of the day, it doesn't matter.

And for that matter, because I am "so confident" with my answer, that doesn't say that I want to buy more plans and that if PPI does what I stated in number 10), plan values will triple. It's like that nonsense comment that "PEP coalition members should stop schooling of their children during the pendency of this fight". The logic just doesn't follow and is besides the point. Again, the PEP coalition is for payment of all benefits, for all availing and non-availing planholders, whether now or in the future, whether exclusive or non-exclusive. The PEP coalition is for PPI not to get a court approved rehab because this is evading its obligations. Whatever legal actions it takes should be directed towards fulfillment of contractual benefits and only that. Disprove me and debunk my analysis ONLY IF its to support those end-goals in mind. Otherwise, it's a big waste of everyone's time.

TLS

 
At Wednesday, May 04, 2005 8:33:00 PM, Anonymous Anonymous said...

the REHAB plan is OK if there is no FRAUD!!

BUT THERE IS FRAUD!!

 
At Wednesday, May 04, 2005 8:36:00 PM, Anonymous Anonymous said...

Go and show them, TLS!

 
At Wednesday, May 04, 2005 11:40:00 PM, Anonymous Anonymous said...

To TLS:

So tama pala yung motto na nakapost dun sa egroup no2pep2010, ang puno't dulo nito, tubo, profit, greed... ang motto pala talaga ng YGC is GREED/PROFIT BEFORE INTEGRITY. tsktsktsk. How sad for the old man
kung hindi nya ito talaga gusto. Masisira ang ngalan nya dahil sa kasakiman ng mga alalay nya.

 
At Wednesday, May 04, 2005 11:52:00 PM, Anonymous Anonymous said...

TO TLS:

"individual companies within a conglomerate are managed that way - funds from one company may support those that are doing poorly."

I work for the biggest conglomerate in the Philippines (Not YGC of course). I just want to inform you on how conglomerates work. I think you are misinformed a little.

1) There is DOSRI. This limits a company from supporting other related companies,directors, and shareholders. This is strictly enforced by SEC or else behest loans all over the country again.

2) Most corporation in a conglomerate are not 100% owned by the group.
I believe that a big block of RCBC is owned by a Japanese company and so are the other YGC companies.

3) Some corporations in a conglomerate are publicly listed.

The others shareholders in this corporation will cry foul if you support your other companies for one's own interest.

 
At Wednesday, May 04, 2005 11:57:00 PM, Anonymous Anonymous said...

THE YUCHENGCOS CAN ALWAYS DIP INTO THEIR DEEP PERSONAL POCKETS TO HONOR THEIR CORPORATE COMMITMENTS TO THEIR CLIENTS WHO PURCHASED THEIR PRODUCTS BECAUSE OF UTMOST TRUST IN THE INTEGRITY OF THE YUCHENGCO NAME!

 
At Thursday, May 05, 2005 12:14:00 AM, Anonymous Anonymous said...

INFILTRATED!!!!

AT first I can't understand why I am confused reading/reviewing comments on our website today.... untile I realized that we'be been
infiltrated. A lot of today's write ups are "pakawala" of PPI. This must mean they are trying to pick our brain, determine "weapons" we have vs PPI/LPI, and use our web to confuse or influence some of our members. It can also mean na "sapol" ang kanilang kalokohan, and now they are in panic.


aba si ako ito!

 
At Thursday, May 05, 2005 12:27:00 AM, Anonymous Anonymous said...

SORRY TO CONFUSE YOU BUT I'M NOT AN INFILTRATOR, IN FACT I'M ANTI-YUCHENGCO BECAUSE OF THE DECEPTIVE REHAB PLAN THEY ARE TRYING TO FOIST UPON US.

ANG IBIG KO LANG SABIHIN, DAPAT GAMITIN NG MGA YUCHENGCO ANG BILYON-BILYONG PERA NILA PARA BAYARAN ANG MGA PLAN HOLDERS NA NAGTIWALA SA PANGALAN NILA!

 
At Thursday, May 05, 2005 7:59:00 AM, Anonymous TLS said...

Thank you for your clarifications, but misinformed I am not. Again, we can go over details but that is not the point of the message. We all know that financial and legal structures within conglomerates are different and determine whether they can get around 1) DOSRI, 2) Shareholder concerns (not being 100% owned by the majority shareholders of the group) and 3) restrictions on corporate governance for publicly listed companies. There's no need to quibble about what can not or can be done even with the PPI/Yuchengco group. There's no point in saying the PPI/Yuchengco group has its "hands tied" in terms of structure because there's always a way, financially and legally.

Enough said. Sorry for wasting everyone's time going back and forth on this.

 
At Thursday, May 05, 2005 8:32:00 AM, Anonymous Anonymous said...

My apologies, too. I was referring to the entirety of this page... one can almost physically feel their presence. in their dire effort to explain what is unexplainable, and their plan to mislead the coalition. nakakaantok ang kanilang posted messages.zzzzz zzzzzzzzz

chameleons are admired for their ability to be unnoticeably present, This is not so with second grade trying hard copy cats.

bato bato sa langit, tamaan wag magagalit!

 
At Thursday, May 05, 2005 8:32:00 AM, Anonymous Anonymous said...

My apologies, too. I was referring to the entirety of this page... one can almost physically feel their presence. in their dire effort to explain what is unexplainable, and their plan to mislead the coalition. nakakaantok ang kanilang posted messages.zzzzz zzzzzzzzz

chameleons are admired for their ability to be unnoticeably present, This is not so with second grade trying hard copy cats.

bato bato sa langit, tamaan wag magagalit!

 
At Thursday, May 05, 2005 8:32:00 AM, Anonymous Anonymous said...

My apologies, too. I was referring to the entirety of this page... one can almost physically feel their presence. in their dire effort to explain what is unexplainable, and their plan to mislead the coalition. nakakaantok ang kanilang posted messages.zzzzz zzzzzzzzz

chameleons are admired for their ability to be unnoticeably present, This is not so with second grade trying hard copy cats.

bato bato sa langit, tamaan wag magagalit!

 
At Thursday, May 05, 2005 5:39:00 PM, Anonymous marc said...

Ah, my last post got lost in the ether…
==========
"The difference between 350 and 247.18, which is 138.36, becomes your profit margin, for now."

can anyone tell me what's wrong with this?
==========

Yes, I can! I plead guilty to sleepiness, wasn’t able to review what I typed.

So, some people actually read my post! Thanks for pointing this out. It was 2 am in the morning when I was writing this and the mistake, even if trivial, slipped through. No matter, the logic is still correct that FIXED VALUE PLANS CAN AND DID REQUIRE INFUSIONS NOT ENVISIONED IN THE REGULAR TRUST FUND CONTRIBUTIONS!

Hey, TLS, keep up the arguments and replies even if it feels like not all the pro-rehab posts come from legitimate (as against planted) posters. For sure, the picture is pretty certain to me; YGC will push for the rehab plan no matter what. So a lot of the posts we reply to are just rearguard actions designed to foment dissent and division within the coalition, and not really to get straight answers (and should I dare say, enlightenment?).

More power to you TLS! More power to the Parents Enabling Parents Coalition!

 
At Thursday, May 05, 2005 6:25:00 PM, Anonymous marc said...

Arggh, there it goes again... "2 am in the morning"! I really should get some sleep... I'm so tired, sleepy, and worried about how to get tuition money. It really keeps me awake night.

And still the propaganda of and manipulation by the YGC continues, insulting our intelligence and mocking us to the bones! That too, keeps me awake at night!

Guys, I need some tips to relieve stress!

 
At Thursday, May 05, 2005 8:52:00 PM, Anonymous Anonymous said...

It has been almost 2 weeks since the first St Paul’s meeting where like minded people first came to organize themselves. In the meantime, the lawyers among us have gone over the options and are getting together, dissecting the situation and planning legal moves. The same is true with those well versed in finance and the corporate world. It is all well and good that there a lot of people who are competently attending to that part of our battle with the corporate giant that is the Yuchengco Group of Companies. In the meantime the rest of us stay tuned to the blogspot awaiting word on what to do next, how we can channel our outrage and frustration.

A lot of us regular guys and gals are neither lawyers nor financial people. How can we help in this battle? What CAN we do? May I suggest the following?

The hearing for the Rehab has not happened yet. Between now and then, we need to generate a lot of attention about our problem in order to exert pressure on the old man Yuchengco to call off and if possible reverse his attack dogs who carried out this assault on us. I read somewhere that the Yuchengcos live in Forbes. If they are churchgoers, they probably go to the Sanctuario de San … well, you know that church in Forbes. Between now and the hearing, storm heaven with prayers there. If enough aggrieved planholders go to church there wearing the t-shirts/articles of clothing clearly identifying us as the victims of YGC’s dastardly moves in PPI, I wonder how uncomfortable it would be for the Yuchengco’s. Make his NEIGHBORS and FRIENDS who attend church there uncomfortable with your presence. “We are here because among you lives the man who promised to pay for my kids’ education then went back on his word. How can a so called man of integrity do such a thing?” That is the message we are all sending by being there. As a bonus, in the heat of summer, it would be nice to go to an airconditioned church for a change. While you are there, maybe you can festoon your car with stickers/leaflets/flyers( improvised or otherwise) expressing the same sentiments as your clothing. May I suggest again to go back to the issue of TRUST and keeping one’s word. Avoid incendiary and emotional statements. It’s Mother’s day on Sunday. Let your kids wear t-shirts saying their mothers trusted the Ambassador’s word about their education, only to be let down. Please feel free to refine the idea further.

 
At Monday, May 09, 2005 10:33:00 AM, Anonymous Anonymous said...

wala ngang pera ngayon e. may pera pag nag-mature ang bonds. ano gusto nyo, mag-file na lang ang pacific ng bancruptcy? ano makukuha nyo dyan? satisfaction na isang prominenteng pamilya e umamin na nalugi? kahit sampong henerasyon ang lumipas, hindi natin kayang ubusin ang yaman nyan! pero tanggapin rin natin na yan ang ginawang protecsyon ng capitalismo sa mga may capital. kung gusto mo naman maging maka-kaliwa, sumama ka sa mga npa at sa russia at sa china. asan ba sila ngayon?

may natitirang pondo. maliit, kulang para tustusan ang napakataas na tuition ng iskwela, gusto mo bang paghatihatian na lang ng lahat o gusto mong ikaw lang ang mabayaran at bahala na ang lahat ng iba? ang sama naman ng ugali mo!

naalala nyo ba ang nangyari sa manila bank? gusto nyong ganun ang gawin dito?

Question naman para sa mga eskwelahan, particular ang mga Catholic Schools: sabi ng simbahan e gusto nilang gawing "pang masa" ang simbahan. yan ang narinig ko sa mga sermon nung pasko. kung pang masa ang pagiging katoliko, bakit yata ang nangunguna sa pataasan ng tuition e mga eskwelahan ng simbahan? ganun ba talaga kagaling ang turo sa mga catholic schools? ang presyo ng tuition sa UP e PhP8,00, sa Ateneo e PhP80,000. Granted na may subsidy ang gobyerno sa UP, sa palagay nyo ba e PhP72,000 ang subsidy ng gobyerno sa bawat estudyante sa UP?

ipagpalagay na natin na ang PhP8,000 na tuition ng UP plus yung government subsidy e PhP72,000 nga sa bawat estudyante, e di pareho na ang suma-total na tinatanggap ng UP at ng Ateneo para sa bawat estudyante, e di dapat pareho na rin ang tatanggapin nila na edukasyon. pareho nga ba? o mas magaling pa rin ang UP? o baka naman kelangan pa ng dagdag na bayad nanaman sa Ateneo...

 

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