PACIFIC Plans Inc., the troubled pre-need company owned by the Yuchengco Group, has been acquired by a group controlled by Noel O?ate, the former chairman of Asian Spirit.

O?ate, who started Asian Spirit Airlines with two small planes in 1995, and then sold it last year as the country?s fourth largest carrier?and is now known as Zest Air?said in a statement yesterday that his Abundance Providers Investments Corp. signed the sale documents of the ailing pre-need company on Dec. 22.

Abundance was now working on a plan to grow Pacific Plans, a company with trust fund assets worth P12 billion and operating revenues of P1.2 billion, O?ate said.

Abundance would also change Pacific Plans? name to Abundance Providers Entrepreneurs Corp., he said.

?With our fresh perspective and focus, we will work with our plan holders initially to ride out the present economic challenges and then further gain strength and momentum moving forward,? O?ate said.

?There were other parties interested in [Pacific Plans], but the group of Mr. O?ate was chosen given his track record of success, his strong financial standing, and his vision for the company and its plan holders,? Pacific Plans president Alfredo Non said.

?The sale was a business decision that will benefit [Pacific Plans] and its plan holders. The Yuchengco Group can now fully focus on its banking and mainstream insurance business.?

Pacific Plans was among the Philippines? biggest pre-need companies until it started having problems with its open-ended educational plans. That was when the government allowed schools to increase their tuition by as much as they wanted starting in 1990.

The yearly tuition increases eventually overwhelmed the premiums and their income, although Pacific Plans? other plans?memorial, pension and fixed-value educational plans?remained viable.

The old management tried to protect Pacific Plans? viable plans by putting them in a separate company, Lifetime Plans Inc., but then it was ordered to fold them back with the affected educational plans.

Burdened once more by tuition increases, Pacific Plans sought and obtained court rehabilitation in 2005.

O?ate yesterday pledged to abide by the rehabilitation plan for Pacific Plans, saying it was business as usual for the company and that plan holders would continue to be served by the company?s branches nationwide until further notice.

O?ate aside, the other major stockholders of Abundance Providers are Carlotta Montinola, Rodolfo Serrano Jr., Rita Linda Jimeno and Ronaldo Geron.

Abundance Providers has an authorized capital stock of P500 million of which P250 million is subscribed and fully paid.

Analysts said Pacific Plans? 300,000 customers and sales force of more than 10,000 could have been the main factors that attracted Abundance to take over the pre-need company.

Last year, O?ate sold his Asian Spirit Airlines to Alfredo Yao?s AMY Holdings, and reportedly for P1 billion. With Jenniffer B. Austria