Platinum Plans Philippines Inc.

It was first organized in August 1983 as Childrens Investment for Lifetime Development
Corporation (CHILD Corp) to engage in the selling of educational plans. Rotarian Ernesto L.
Salas Sr. & his family (daughter Rhodora Salas and son Ernesto R. Salas Jr.) are the sole
owners of Platinum Plans Philippines Inc. In October 1983, CHILD Corporation changed its
name to Youth Corporation. In October 1988, again changing its name to Youth Educational
Plans, Inc.

In June 1990, it became Platinum Plans Phil., Inc. and expanded its business by offering
pension plans and fixed value education plans. It stopped selling traditional open-ended
education plans in 1993.

Capitalization: P1 Billion with a paid-up capital of P620 Million.

Assets: P1.3 Billion (P1,325,910,105.98) consisting of land, condominium units, office furniture
and fixtures and equipment.

Liabilities: Outside of its obligations to its plan holders, Platinum has an outstanding obligations
totaling to P424 Million from credit and other financial facilities as of 2004.

Drop in Collections/ Revenues: From a high of P553.7 Million collections in 2003, revenues fell
to P363 Million in 2004. 2005 collections are expected to be much lower. An average of 8 to 10
terminations per day by Platinum plan holders are taking place since it filed a petition for
rehabilitation. As of may 2005, the number of branches are down to 70 from a high of 132 in
2003.

OTHER INFORMATION:
The Platinum Plans Inc. is under rehabilitation plan to satisfy the needs of its creditors and plan
holders.
Platinum is reportedly locked in negotiations with a Canadian firm that has offered to buy out the
pre-need firm from the controlling Salas family.
Platinum, however, said it remains uncertain whether a deal could be closed between the
company and the prospective investor due to the current controversies and the consequent
operational and financial difficulties plaguing it. It said the prospect of getting a "white knight" will
require a period for normal due diligence.
Platinum said getting a foreign investor will strengthen not only the company but restore
credence and confidence in the pre-need industry as well.
According to the pre-need firm, its existing long-term commitments towards planholders will be
better protected with new resources and management.
Aside from a white knight, Platinum will also source fresh funds of P75 million to settle maturing
plans.
Platinum also plans to offer a new homeowning system addressing the contractual savings
capabilities of overseas Flipino workers and developing non-performing assets of banks suitable
for housing for which the pre-need firm can earn a hefty income estimated to be P2.2 billion
from just one specific property.

REFERENCES:
http://www.abs-cbnnews.com/feedback/03/20/09/platinum-plans-another-big-time-swindlerlegacy-plans

http://platinumsucks.blogspot.com/2005/09/some-facts-about-platinum-plans.html

http://www.philstar.com/business/306456/platinum-plans-gets-debt-relief