The proposed Conditional Joint Venture Agreement (CJVA) between South Cotabato II Electric Cooperative (SOCOTECO II) and Ignite Power has encountered a new setback after the Office of the Executive Judge of the 11th Judicial Region issued another Temporary Restraining Order (TRO) halting the remaining scheduled dates of the cooperative’s membership plebiscite.
This is the second TRO issued in connection with the proposed deal. The earlier TRO was lifted ahead of its scheduled expiration, allowing two voting dates—September 19 and 20—to proceed.
The latest TRO stemmed from a petition filed by SOCOTECO II member-consumer-owner (MCO) Denver Jay D. Dequilla, who questioned the conduct of the plebiscite and whether members had been provided with sufficient information to make an informed decision on the proposed transaction.
At the center of the dispute is a proposed transaction involving SOCOTECO II’s distribution assets. Under the proposed arrangement, Ignite Power would provide approximately 70 percent of the consideration in cash and the remaining 30 percent in equity in a new entity.
Dequilla raised concerns over what he described as the lack of complete disclosure of key information, including the CJVA’s terms, supporting studies, financial projections, asset valuation and relevant regulatory approvals.
For member-consumer-owners, the issue therefore extends beyond whether to approve or reject the proposed partnership. It also concerns whether they have been given sufficient and relevant information to meaningfully assess a transaction that could have long-term implications for the cooperative, its assets and the consumers it serves.
In issuing the TRO, the court recognized, at this preliminary stage, the importance of allowing members to cast an informed vote on a transaction involving the cooperative’s core distribution assets. The court also noted that once a vote is conducted without adequate information, the opportunity to make an informed decision may not be readily restored through monetary compensation.
The TRO restrains SOCOTECO II and Ignite Power from proceeding with the remaining scheduled plebiscite dates. It is effective for 72 hours from issuance and remains subject to further proceedings, including a determination on whether it should be extended.
The latest legal challenge adds another layer of uncertainty to the proposed SOCOTECO II–Ignite Power partnership. The continuing dispute highlights the importance of transparency, adequate disclosure and meaningful member participation, particularly when a proposed transaction involves the assets and infrastructure central to the delivery of electricity to the communities served by the cooperative.
The case remains subject to further court proceedings, and the issuance of the TRO does not, by itself, constitute a final determination on the merits of the petition or the proposed CJVA.
