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Documente Profesional
Documente Cultură
Rehabilitation
and Insolvency
-became law in July 18 2 110; repeals the old insolvency law; provides framework for insolvency and rehabilitation
entities; establishes proc ,dures for court-supervised, pre-negotiated, informal (out of court) rehabilitation
Declaration
of financially distressed
of the law:
or liquidation of debtor
in commercial affairs, preserve and maximize the value of the assets of these debtors, recognize
1. IN REM! (conclusive against all the world); Jurisdiction acquired upon publication of notice 2.
4: Definitions:
(k) Debtor - a sole proprietorship duly registered with the Department of Trade and Industry (DTI), a partnership duly registered with the
Securities and Exchange Commission (SEe), a corporation duly organized and existing under Philippine laws, or an individual debtor who has
become insolvent as defi ed herein.
(p) Insolvent shall refer to the financial condition of a debtor that is generally unable to pay its or his liabilities as they fall due in the ordinary
course of business or ha liabilities that are greater than its or his assets.
(gg) Rehabilitation shall r fer to the restoration of the debtor to a condition of successful operation and solvency, if it is shown that its
continuance of operation Is economically feasible and its creditors can recover by way of the present value of payments projected in the plan,
more if the debtor continues as a going concern than if it is immediately liquidated.
Section
5 - Exclusions:
Section
6 - De~gnatioD
Section
7 - Substantive
companies, pre need companies and National and local gov. agencies
court
Consolidation:
nd liabilities of a debtor may not be commingled or aggregated with those of another, unless the latter is a related
r controlled directly or indirectly by the same interests
ingling or aggregation of assets and liabilities of the debtor with those of a related enterprise may only be allowed
in fact of assets and liabilities of the debtor and the related enterprise prior to the commencement
of the proceedings;
(b) the debtor and the rei' ted enterprise have common creditors and it will be more convenient to treat them together rather than separately;
(c) the related enterprise
oluntarily accedes to join the debtor as party petitioner and to commingle its assets and liabilities with the debtor's;
and
(d) The consolidation
of rehabilitation.
of 1ssets and liabilities of the debtor and the related enterprise is beneficial to all concerned and promotes the objectives
Section 10. Liability of In~ividual Debtor, Owner of a Sale Proprietorship, Partners in a Partnership, or Directors and
owner of a sole propriet01ship, partners in a partnership, or directors and officers of a debtor shall be liable for double
SOld, embezzled or dispo ed of or double the amount of the transaction involved, whichever is higher to be recovered
and the creditors, if they, having notice of the commencement
of the proceedings, or having reason to believe
about to be commence
,or in contemplation
of the proceedings, willfully commit the following acts:
(a) Dispose or cause to b disposed of any property of the debtor other than in the ordinary course of business or authorize or approve any
transaction in fraud of cr ditors or in a manner grossly disadvantageous to the debtor and/or creditors; or
(b) Conceal or authorize
~.
SECTION68
Confirmation of the Rehab Plan IF:
No objections filed in time or
Filed objections lack merit or
Basisfor objection was cured or
Debtor complied with an order to cure
the objection
Q: If there are still unresolved disputes over
claims, may the court confirm the Rehab Plan
anyway?
A: YES,provided the Rehab Plan has made
adequate provisions for paying for such claims.
Q: May the court implement the Rehab Plan
despite the lack of approval or objection of the
insolvent debtor?
A: YES,provided the terms of the Plan are
fOI-
SECTION69
Effect of Confirmation of the Rehab Plan
BINDSthe (1) the debtor and
(2) all persons affected by it
(even ifthey did not participate in the
proceedings or opposed the same and
regardless if their claims were
scheduled or not)
Debtor must COMPLYwith the Plan and
take all actions necessary to CARRYIT
OUT
(1)
SEalON 73
Accounting Discharge of Rehab R~ciever
COMPROMISESon amounts or
;...
SECfION 74
Termination of Proceedings
Q: Who may file for Termination?
A: Any Stakeholder or the Rehab Receiver. The
court shall either declare the plan successful or
CHAPTERIII: PRE-NEGOTIl'\TEDREHAB
SECTION76
Petition by Debtor - How filed
By insolvent Debtor
Pre-negotiated Rehabilan
endorsed/approved b creditors
holding (2/3) of the to al liabilities,
a failure.
includinz
11 .
1115
So'-Ilro~
rrorl~-tr'lrc
........
I
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holdinz
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