Bilyonaryo Eusebio “Yosi” Tanco is amending the STI Holdings’ charter to appease creditors of the debt-saddled education provider.
The STI board chaired by Tanco approved on October 7 amend its charter by inserting a provision that would enable the publicly-listed firm to act as a corporate surety and to guarantee the loan obligations of subsidiaries and affiliates as part of its secondary purpose.
STI said it tweaked its charter to “comply with the requirements of creditor banks of the corporation’s subsidiaries and affiliates and to grant these subsidiaries and affiliates access to funding for their business needs that would ultimately benefit the corporation.”
This amendment to its articles of incorporation will be submitted for approval to its stockholders during the annual meeting on December 3.
STI’s subsidiaries with outstanding loans are STI Education Services Group (P1.2 billion due to China Bank and P400 million under the LandBank ACADEME study now-pay later program), iAcademy (P521 million owed to China Banking), and STI West Negros University (P240 million owed to China Bank).
STI’s current liabilities rose 7.4 percent to P1.54 billion as of March 2021 from P1.43 billion as of June 2020.