OUTLINE FOR SUSPENSION OF PAYMENTS, CORPORATE REHABILITATION AND INSOLVENCYSee2020

I. HISTORICAL BACKGROUND OF THE LAWS GOVERNING

INSOLVENCY IN THE PHILIPPINES (Metropolitan Bank and These rules shall similarly govern all further proceedings in
Trust Company v. S.F. suspension of payments and rehabilitation cases already
Naguiat Enterprises, G.R. No. 178407, 18 March 2015) pending, except to the extent that in the opinion of the
court, it application would not be feasible or would work
injustice. In which event the procedures originally applicable
II. CURRENT LAWS, RULES AND REGULATIONS GOVERNING would continue to govern.
SUSPENSION OF PAYMENTS,
REHABILITATION, AND INSOLVENCY 2.3. AM 15-04-06-SC, Financial Liquidation and Suspension of
2.1. RA 10142, Financial Rehabilitation and Insolvency Act of Payments Rules of Procedure for
2010 Insolvent Debtors (2015)
(Scope of Application: Sec. 146, 147) (Scope of Application: Sec 2)

Sec 146, This Act shall govern all petition filed after it has The rule shall govern the practice, pleading and procedure
taken effect. All further proceedings in insolvency, for the liquidation of insolvent juridical and individual
suspension of payment and rehabilitation cases then debtors and suspension of payments of insolvent entity
pending, except to the extent in the opinion of the court their debtors pursuant to the FRIA.
application would not be feasible and would work injustice,
in which event the procedures set forth in prior laws and 2.4. Special Law
regulations shall apply. (RA 10142, Sec 5)
Exclusion- the term debtor does not include banks, insurance
Sec 147, This Act shall apply to all contracts of debtors companies, pre need companies, and national and local agencies or
regardless of the date of perfection. units.
For this purpose:
a. Bank shall refer to any duly licensed bank or quasi-bank that
2.2. AM 12-12-11-SC, Financial Rehabilitation Rules of is potentially or actually subject to conservatorship,
Procedure (2013) receivership or liquidation proceedings under the new central
(Scope of Application: Sec. 2) bank act.
b. Insurance company shall refer to those companies that are
These Rules shall apply to petition for rehabilitation of potentially or actually subject to insolvency proceedings
corporations, partnerships and sole proprietorships filed under the insurance code
pursuant to republic act no 10142 otherwise known as FRIA
of 2010.

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c. Pre need company shall refer to any corporation upon publication of the notice of the commencement of the
authorized/licensed to sell or offer to sell pre need plans. proceeding in any newspaper of general circulation in the
Provided, that government financial institutions other than Philippines in a manner prescribed by the rules of procedure
banks or government owned or controlled corporations shall to be promulgated by the Supreme Court.
be covered by this act, unless their specific charter provides The proceeding shall be conducted in a summary and
otherwise. non-adversarial manner consistent with the declared policy
of this act and in accordance with the rules of procedure to
III. REHABILITATION be promulgated by the Supreme Court.
3.1. DEFINITION (RA 10142, SECTION 4(GG)
Refer to the restoration of the debtor to a condition of 3.4. REHABILITATION MAY BE COURT-SUPERVISED, OUT-OF-
successful operation and solvency, if it shows that its COURT, OR PRE-NEGOTIATED.
continuance of operation is economically feasible and
creditors can recover by way of present value of payments 3.5. COURT-SUPERVISED REHABILITATION (AM 12-12-11, SEC 6)
projected in the plan, more if the debtor continues as a going
3.5.1. Its Initiation (RA 10142, Section 5)
concern than if is immediately liquidated.
3.5.1.1. Petition by Debtor (RA 10142, Sec 12;
Petition to Initiate Voluntary proceedings by debtor-When
3.2. PURPOSES (PHILIPPINE BANK OF COMMUNICATIONS V. BASIC
approved by the owner in case of sole
POLYPRINTERS AND PACKAGING CORPORATION, G.R. NO.
proprietorship, or by a majority of the partners
187581, 20 OCTOBER 2014; BPI V. SEC, GR 164641, 20 in a partnership, or in case of a corporation, by a
DECEMBER 2007) majority vote of the board of directors or trustee
3.3. Nature of Proceedings (AM 12-12-11-SC, Section 4) and authorized by the vote of stockholders
The proceeding under these rule shall be in rem. Jurisdiction representing at least 2/3 of the outstanding
over all persons affected by the proceeding is acquired upon capital stock, or in case of a non-stock
publication of the notice of commencement of the corporation, by a vote of at least 2/3 of the
proceedings and the commencement order or any similar members in a stockhoder’s or member’s
order of the proceedings in one (1) newspaper of general meeting duly called for the purpose, an insolvent
circulation in the Philippines for two (2) consecutive weeks debtor may initiate voluntary proceedings under
this act by filing a petition for rehabilitation with
RA 10142 sec 3 the court and on the grounds hereinafter
The proceeding under this act shall be in rem. Jurisdiction specifically provided. The petition shall be
over all person affected by the proceeding shall be acquired verified to establish the insolvency of the debtor

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and the viability of its rehabilitation, and include Sec 1. Who may petition- When approved by:
whether as an attachment or as part of the body a) Owner, in case of sole proprietorship
of the petition, as a minimum the following: b) A majority partner in case of partnership
a. The identification of the debtor, its principal activities c) A majority vote of the board of the board of directors or
and its addresses trustee and authorized by the vote of stockholders
b. Statement for the fact of and the cause of the debtor’s representing at least 2/3 of the outstanding capital
insolvency or inability to pay its obligation as they stock, or at least 2/3 of the member in a non-stock
become due. corporation, in case of corporation.
c. The specific relief sought An insolvent debtor may initiate voluntary proceedings
d. The ground upon which the petition is based under this rules by filing a petition for rehabilitation with the
e. Other information that may be required under this act court based on the grounds hereinafter specifically provided.
depending on the form of relief requested.
f. Schedule of debtor’s debts and liability including a list of A group debtor may file a petition for rehabilitation under
creditors with their addresses, amount of claims and this rule when 1 or more of its members foresees the
collaterals or securities if any impossibility of meeting debt when they respectively falls
g. inventory of all its assets including receivables and due, and the financial distress would likely adversely affect
claims against third parties the financial condition and/or operation of the other
h. A rehabilitation plan members of the group or the participation of the other
i. The name of at least 3 nominee for the position of members of the group is essential under the terms and
rehabilitation receiver conditions of the proposed rehabilitation plan
j. Other documents required to be filed with the petition
pursuant to this act and the rules of procedure as may Sec. 2 Content of the petition
be promulgated by the Supreme Court.
A group of debtors may file a petition for rehabilitation A. The petition filed by the debtor must be verified and must
under this act when one or more of its members foresees set forth with sufficient particularity all of the following
the impossibility of meeting debts when they respectively material facts.
falls due, and the financial distress would likely adversely 1. The name, business, and principal address and other
affect the financial condition and/or operations of other addresses of the debtor
members of the group and/or participation of other 2. The nature of the business and principal activities of the
members of the group is essential under the term and debtor, and the addresses where these activities are
conditions of the proposed rehabilitation plan. conducted.
3. The history of the debtor
See also AM 12-12-11-SC, Rule 2(A)1, Sec 1-3; 4. The facts and the cause of the debtor’s insolvency

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5. The specific relief sought under the rule possession of the debtor or third parties, stating the
6. The ground upon which the petition is based nature of each assets, the location and condition
7. All pending actions and proceedings by or against the thereof, the book value and market value of the assets,
debtor/s and the court or tribunals where they are and attaching the corresponding certified copy of the
pending certificate of the title thereof in case of real property or
8. The threats and demands t enforce claims or lien against the evidence of title or ownership in case of movable
the debtors property; the encumbrances, liens, or claims thereon, if
9. The manner by which the debtor may be rehabilitated any and the identities and addresses of the lien holders
and how such rehabilitation may benefit the general and claimants.
body of creditor, employees and stockholders
10. The exact addresses at which documents regarding the The inventory shall include a schedule of A/R which must
debtor and the proceedings may be reviewed and indicate the amount of each persons from whom due and
copied their correct addresses, the date of maturity, and the
B. The petition shall be accompanied by the following remotely collectible and a schedule of existing claims against
document: third parties w/c must indicate the name and the last
1. The ITR stamped as received by the BIR for the past 2 address on record of each 3 rd party against whom the debtor
yrs. prior to the yr. of filing. has a claim, the nature and amount of the claim, including
2. An audited financial statement of the debtor at the end the principal, interest, or penalties due from each 3 rd party
of its last fiscal year and any pledge, lien, mortgage, judgment or other security
3. Interim financial statement not earlier than thirty 30 or collateral given for the payment of each claim, and a brief
days prior to the filing of the petition and certified under statement of the facts w/c gave rise to the claim.
oath by the appropriate officer, except when the
petition is filed w/in 30 days after the end of the fiscal 6. A rehabilitation plan which conforms w/ the minimal
year. requirement set out in 61, rule 2 of the rules
4. A schedule of debts and liabilities w/c lists all the 7. A schedule of payments and disposition of assets w/c
creditors of the debtor, including the name and last the debtor effected w/in 1 yr. immediately preceding
address of record of each creditor, the amount of each the filing of the petition.
claim as to principal interest, or penalties due 30 days 8. A schedule of cash flow of the debtor for three months
prior to the date filing, the nature of the claim, and any immediately preceding the filing of the petition and
pledge, lien, mortgage, judgment, or other security given detailed schedule of the projected cash flow for the
for the payment thereof succeeding 3 months
5. An inventory of assets w/c must list w/ reasonable 9. Statement of possible claims by or against the debtor
particularly all the assets of the debtor whether in the w/c must contain a brief statement of the facts w/c

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might give rise to the claim and an estimate of the an insolvent debtor may initiate voluntary
probable amount thereof proceedings under this act by filing a petition for
10. An affidavit of General Financial Condtion which shall rehabilitation with the court and on the grounds
contain answer to the question or matters prescribed in hereinafter specially provided. The petition shall
Annex A of the rules. be verified to establish the insolvency of the
(Annex A Sec 5, Rule 1, b, Affidavit of General Financial debtor and the viability of its rehabilitation, and
Condition, shall refer to a verified statement on the include, whether as an attachment or as part of
general financial condition of the debtor as required I the body of the petition, as a minimum the
Section 2(B)(10), rule 2 of these rules). following:
11. A list containing at least three (3) nominees for the a. Identification of the debtor, its principal activities and its
position of rehabilitation receiver as well as their addresses
qualifications and addresses, including but not limited to b. Statement of the fact of and the cause of the debtor’s
their telephone number, fax number and e-mail insolvency or inability to pay its obligations as they
addresses. become due
All attachments to the petition shall be deemed part c. The specific relief sought pursuant to this act
and parcel of the verified petition. d. The ground for which the petition is based on
Section 5(b) and Annex A of AM 12-12-11; e. Other information that may be required under this act
Metropolitan Bank and Trust Company v. Liberty depending on the form of relief sought
Corrugated Boxes Manufacturing Corporation, f. Schedule of debtor’s debts and liabilities, including a list
G.R. No. 184317, 25 January 2017 of creditors their addresses, the amount of claims,
3.5.1.2. Petition by Creditor; Grounds to Initiate Proceedings collateral or securities if any.
(RA 10142, Section 12-14; g. An inventory of all its assets including receivables and
Sec 12, Petition to initiate voluntary proceedings by debtor- claims against third parties.
when approved by the owner in a sole h. A rehabilitation Plan
proprietorship or majority of the partners in case i. Names of at least 3 nominees for the position of
of a partnership, or in case of a corporation, by rehabilitation receiver
the majority vote of the board of directors or j. Other documents required to be filed with the petition
trustees and authorized by the vote of the pursuant to this act and the rules of procedure as may
stockholder representing at least 2/3 of the be promulgated by the Supreme Court.
outstanding capital stock, or in case of non-stock A group of debtors my jointly file a petition for rehabilitation
corporation, by the vote of at least two thirds under this act when one or more of the members foresees
(2/3) of the members, in a stockholder’s or the impossibility of meeting debts when they respectively
member’s meeting duly called for the purpose, falls due, and the financial distress would likely adversely

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affect the financial condition and/or operations of the other e. The names of at least 3 nominees for the position of
members of the group is essential under the terms and rehabilitation receiver.
conditions of the proposed rehabilitation plan. f. Other information may be required under this act depending
on the form of relief requested
Sec 13, Circumstances necessary to initiate involuntary proceedings- g. Other documents required to be filed w/ the petition
Any creditor or group of creditors with a claim of, or the aggregate pursuant to this act and the rules of procedure as may be
of whose claims is, at least one million pesos or at least twenty five promulgated by the Supreme Court.
percent (25%) of the subscribe capital stock or partners’ AM 12-12-11-SC, Rule 2(A)2, Section 4-6)
contributions, w/c ever is higher, may initiate involuntary Sec 4. Who may petition- Any creditor or group of creditors with a
proceedings against the debtor by filing a petition for rehabilitation claim of, or the aggregate of whose claims is at least 1M pesos or at
w/ the court if: least 25% of the total of the subscribe capital stock or partners’
a. There is no genuine issue of fact or law on the claim/s of the contributions, whichever is higher, may initiate voluntary
petitioner/s and that the due and demandable payments proceedings under this rules by filing a petition for rehabilitation of a
thereon have not been made for at least sixty (60) days or debtor with the court and on the grounds hereinafter specifically
that provided.
The debtor has failed generally to meet its liabilities as the
fall due. Sec 5. Grounds to initiate involuntary proceedings- involuntary
b. A creditor other than the petitioner has initiated foreclosure proceedings may be initiated against the debtor by filing petition
proceedings against the debtor that will prevent the debtor with the court if:
from paying its debts s they become due or will render it a. There is no genuine issue of fact or law on the claims of the
insolvent. petitioners and that the due and demandable payments
thereon have not been made for at least 60 days.
Sec 14, Petition to initiate involuntary proceedings- The creditor’s b. At least one creditor other than the petitioner has instituted
petition for rehabilitation shall be verified to establish the a foreclosure proceedings that will prevent the debtor from
substantial likelihood that the debtor may be rehabilitated, and paying its debts as they become due or will render it
include: insolvent.
a. The identity of the debtor its principal activities and its c. The debtor has failed generally to meet its liabilities as they
address fall due.
b. The circumstances sufficient to support a petition to initiate
involuntary rehabilitation proceedings under section 13 of Sec 6. Content of the petition for involuntary proceedings-
this act. The petition for rehabilitation shall be verified to establish the
c. The specific relief sought under this act. substantial likelihood that debtor can be rehabilitated. The petition
d. A rehabilitation plan shall include

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a. The name, business, and principal address and other known AM 12-12-11-SC, Section 7, 8, 8(U, Section 5(e)) Action on the
addresses of the debtor petition-
b. The nature of the business and the principal activities of the If the court finds the petition for rehabilitation to be sufficient in form
debtor and substance, it shall w/in 5 working days from the filing of
c. The circumstances sufficient to support a petition to initiate the petition, issue a commencement date.
involuntary rehabilitation proceedings under this rule.
d. The specific relief sought Initial Appointment of Rehabilitation Receiver (RA 10142,
e. A rehabilitation Plan Section 30;
f. Names of at least 3 nominees for the position of rehab The court shall initially appoint a rehabilitation receiver who
receiver, as well as the qualification, office and email may or may not be among the nominees of the petitioner.
addresses However, at the initial hearing of the petition, the creditors
g. The exact addresses at w/c documents regarding regrdin and the debtor who are not petitioners may nominate other
the debtor and the proceedings may be reviewed and persons to the position. The court may retain the
copies, if known to the petitioners rehabilitation receiver initially appointed or appoint another
h. Documents showing that there is substantial likelihood that from among those nominated.
debtor may be rehabilitated
In case the debtor is a security market participant, the court
3.5.2. Action on the Petition and Commencement of Proceedings (RA shall give priority to the nominee of the appropriate
10142, Section 15; securities or investor protection fund.
Sec 15, Action on the petition-
If the court finds the petition for rehabilitation to be If a qualified natural person or entity is nominated by more
sufficient in form and substance, it shall, w/in 5 working days than 50% of the secured creditors and general unsecured
from the filing of the petition issue a commencement order. creditors, and satisfactory evidence is submitted, the court
If w/in the same period, the court finds the petition deficient shall appoint the creditors’ nominee as rehabilitation
in form and substance, the court may in its discretion, give receiver.
the petitioner/s a reasonable period of time w/in which to
amend or supplement petition, or to submit such documents AM 12-12-11, Sec 25)
as may be necessary or proper to put the petition in proper Initial appointment of R.R.
order. In such case the 5 working days provided above for the The court shall initially appoint a RR who may or may not be
issuance of the commencement order shall be reckoned from among the nominee of the petitioner. At the initial hearing
the date of the filing of the amended or supplemental of the petition, the creditors and the debtor who are not
petition or the submission of such documents.
petitioners may nominate other persons to the position. The
court may retain the rehabilitation receiver initially

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appointed or appoint another who may or may not be from Sec 5,(a), Grounds to initiate involuntary proceedings –
among those nominated. involuntary proceedings ay be initiated against the debtor by
In case the debtor is a security market participant, the court filing a petition with the court if:
shall give priority to the nominee of the appropriate A. There is not genuine facts or law on the claim/s of the
securities or investor protection fund. petitioner/s and the due and demandable payment has
If a qualified natural person or entity is nominated by more not been made for at least 60 days.
than fifty percent (50%) of secured creditors, and the B. The debtor has failed generally to meet its liabilities as
general unsecured creditors, and satisfactory evidence of the fall due
the creditor’s support is submitted, the court shall appoint C. At least one creditor other than the petitioner/s has
the creditor’s nominee a RR initiated foreclosure proceedings against the debtor that
will prevent the debtor from paying its debts as they
Administrative Expenses (RA 10142, Section 4(a); become due or will render it insolvent.
Administrative expense shall refer to those reasonable and
necessary expenses. RA 10142, Section 33)
1. Incurred or arising from the filing of a petition under the Compensation and terms of service
provisions of the act. The RR and his direct employees or independent contractors
2. Arising from, or in connection with the conduct of the shall be entitled to compensation for reasonable fees and
proceedings under this act, including those incurred for expenses from the debtor according to the terms approved
the rehabilitation or liquidation of the debtor. by the court after notice and hearing. Prior to such hearing,
3. Incurred in the ordinary course of business of the debtor the RR and his direct employees shall be entitled to
after he commencement date. reasonable compensation based on quantum meruit. Such
4. For the payment of new obligations obtained after the cost shall be considered as administrative expenses.
commencement date to finance the rehabilitation of the
debtor.
5. Incurred for the fees of the rehabilitation receiver or 3.5.2.1. Commencement Order (RA 10142, Section 16,
liquidator and of the professionals engaged by them The rehab proceedings shall commence upon the issuance of
6. They are otherwise authorized or mandated under this the commencement order:
act or such other expenses as may be allowed by the a. identify the debtor, its principal business or activity/ies
Supreme Court. and its official lace of business
b. summarize the ground/s for initiating the proceedings.
AM 12-12-11-SC, Section 5(a); c. State the relief sought under this act and any
requirement or procedure particular to the relief sought.

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d. State the legal effects of the commencement order, m. Set the case for initial hearing, which shall not be more
including those stated in sec 17 of this act than 40 days from the date of filling of the petition for
e. Declare the debtor is under rehabilitation the purpose of determining whether there is substantial
f. Direct the publication of the commencement order in a likelihood for the debtor to be rehabilitated
newspaper of general circulation in the Philippines once a n. Make available copies of the petition and rehabilitation
week for 2 consecutive weeks with the fist publication to plan for examination and copying by any interested party.
be publish 7 days from the time of its issuance. o. Indicate the location or locations at which the documents
g. If the petitioner is the debtor direct the service by regarding the debtor and the proceedings under act may
personal delivery of a copy of the petition on each be reviewed and copied.
creditor holding at least 10% of the total liabilities of the p. State that any creditor or debtor who is not the
debtor as determined from the schedule attached to the petitioner, may submit the name or nominate any other
petition within 5 days, if the petitioner/s is/are creditor/s qualified person to the position of RR at least 5 days
direct the service by personal delivery of a copy of the before the initial hearing.
petition to the debtor within 5 days. q. Include a stay or suspension order w/c shall
h. Appoint a rehabilitation receiver who may or not be from 1. Suspend all actions or proceedings, in court or
among the nominees of the petitioner/s and who shall otherwise, for the enforcement of claims against the
exercise such powers and duties defined in this act as debtor.
well as the procedural rules that the Supreme Court will 2. Suspend all actions to enforce any judgment,
promulgate. attachment or other provisional remedies against the
i. Summarize the requirements and deadlines for creditors debtor.
to establish their claims against the debtor and direct all 3. Prohibit the debtor from selling, encumbering,
creditors to their claims with court t least 5 days before transferring or disposing in any manner any of its
the initial hearing. properties except in the ordinary course of business
j. Direct the BIR to file and serve on the debtor its and properties except in the ordinary course of
comments on or opposition to the petition of its clam/s business.
against the debtor under such procedures as the 4. Prohibit the debtor from making any payment of its
Supreme Court provide. liabilities outstanding as of the commencement date
k. Prohibit debtor’s suppliers from withholding supplies or except as may be provided herein.
service in the ordinary course of business for as long as
the debtor makes payments for the services or goods sec 30; Initial appointment of the RR- the court shall initially
supplied after the issuance of the commencement order. appoint the RR, who may or may not be from among the
l. Authorize the payment of administrative expenses they nominee of the petitioner. However, at the initial hearing of
become due the petition, the creditors and the debtor who ae not

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petitioner may nominate other persons to the position of 3.5.4. Notice of Claim (RA 10142, Section 23; AM 12-12-11, Section
RR. The court may retain the RR initially appointed or 12)
appoint another who may or may not be among from those 3.5.5. Initial Hearing; Action at the Initial Hearing (AM 1212-11, Sec
nominated. 13-15 RA10142, Section 22)
3.5.6. Rehabilitation Receiver; Oath and Bond (RA 10142, Sec 4(hh),
In case the debtor is a securities market participant the court 34; AM 12-12-11, Sec 29; RA 3591, as amended, Sections
shall give priority to the nominee of the appropriate 5(e, p), 9, 12(a)) 3.5.6.1. Qualifications (RA 10142, 28, 29;
securities or investor protection fund. AM 1212-11, Sec 20, 21)
3.5.6.2. Conflict of Interest as a Disqualification;
See also AM No. 12-12-11, Sec 7, 8) Requirement of Disclosure (RA 10142, 40;
3.5.2.2. Commencement Order: Effectivity and AM 12-12-11, Sec 22, 23)
Duration (RA 10142, Sec 21; AM 12-12-11SC, Sec 3.5.6.3. Objection on Grounds of Conflict (AM 1212-11, Sec
11); Retroactive Effect and Legal Effects of 24)
Commencement Order (RA 3.5.6.4. Removal (RA 10142, Sec 32; AM 12-12-11, Sec 27)
10142, Section 17, 19, 20; AM 12-12-11SC, 3.5.6.5. Powers, Duties and Responsibilities;
Section 9; BIR v. Lepanto Ceramics, Inc., GR Immunity (RA 10142, Section 31, 41; AM 12-12-
224764, 24 April 2017; Allied Banking 11, Sec 26, 38)
Corporation v. Equitable PCI Bank, Inc. 858 SCRA Registry of Claims; Opposition or Challenge (RA
627, G.R. No. 191939 March 14, 2018) 10142, Section 44, 45; AM 12-12-11, Sec 44, 45)
Substantive and Procedural Consolidation, RA Employment of Professionals (RA 10142,
10142, Section 7 Section 39; AM 12-12-11, Sec 37)
3.5.2.3. Effects of the Commencement Order as Regards 3.5.6.6. Report of Rehabilitation Receiver (RA10142, Sec 24;
Secured Creditor Rights (RA 10142, Sections 60, AM 12-12-11, Sec 16)
61; AM 12-12-11, Sec 3.5.7. Giving Due Course to or Dismissal of Petition, or Conversion of
59) Proceedings (RA10142, Section 25, 26,
3.5.3. Stay Order (AM 12-12-11-SC, Section 5(r)) 63, 42, 27; AM 12-12-11, Sec 17, 18, 19)
3.5.3.1. Justification for Stay Order (Negros Navigation 3.5.8. Creditors’ Committee
Co., Inc. v. CA, GR No. 163156, 3.5.8.1. Organization (RA 10142, Sec 63, 42; AM 12-12-
10 December 2008) 11, Sec 39); Election of
3.5.3.2. Effects of Stay Order; Exceptions (AM 1212-11-SC, Representatives to the Committee (AM 12-
Sec 8; RA 10142, Sec 18; See also AM 12-12-11- 12-11, Sec 40); Election of Chairman of
SC, Sec 10; Panlilio v. RTC 51, GR. 173846, 2 Committee (AM 12-12-11, Sec 41)
February 2011) 3.5.8.2. Role (RA 10142, Sec 43; AM 12-12-11, Sec 42)

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3.5.9. During Pendency of Petition: Governance of Debtor’s Business 3.5.13.2. Creditor Approval (RA 10142, Sec 64; AM 12-12-
3.5.9.1. Existing Management (RA 10142, Sec 31, 47) 11, Sec 62; Victorio-Aquino v. Pacific Plans Inc.,
3.5.9.2. Displacement of Existing Management – How and et al., GR 193108, 10 December 2014; BPI v.
Grounds (RA 10142, Sec 36;AM 12-12-11, Sec SEC, GR 164641, 20 December 2007
31) 3.5.13.3. Submission to Court (RA 10142, Sec 65; AM 12-12-
3.5.9.2.1. Displacement by Rehabilitation Receiver (RA 11, Sec 63)
10142, Sec 36, AM 12-12-11, Sec 31, 32) 3.5.13.4. Objections to or Confirmation of
3.5.9.2.2. Displacement by Management Committee (AM 12- Rehabilitation Plan (RA 10142, Sec 66-68; AM
12-11, Sec. 35) 12-12-11, Sec 64-67, 70)
Management Committee: Composition, Post-commencement Interest (RA 10142,
Qualifications, Role, Powers and Duties (RA Section 54; AM 12-12-11, Sec 53)
10142, Sec 37, 38; AM 12-12-11, Sec 33, 34, 36) Liability of General Partners of a Partnership for
3.5.10. During Pendency of Petition: Use, Preservation and Disposal Unpaid Balances Under an
of Assets and Treatment of Assets and Claims after Approved Plan (RA 10142, Sec 70; AM 12-
Commencement Date (RA 10142, Sec 47-50) 12-11, Sec 68)
3.5.10.1. Unencumbered Assets (RA 10142, Sec 49, 52; AM Treatment of Amounts of Indebtedness or
12-12-11, Sec48, 52) Obligations Forgiven or Reduced. RA 10142,
3.5.10.2. Encumbered Assets (RA10142, Sec 50; AM 12-12- Sec 71; AM 12-12-11, Sec 69
11, Sec 49) Accounting Discharge of Rehabilitation
3.5.10.3. Assets Held by Third Parties (RA 10142, Sec 51; AM Receiver. RA 10142, Sec 73; AM 12-12-11, Sec
12-12-11, Sec 50) 71.
3.5.10.4. Assets Subject to Depreciation (RA 10142, Sec 53; 3.5.14. Procedural Remedy (AM 12-12-11, Rule 6, Sec 1, 2; Victorio-
AM 12-12-11, Sec 53) Aquino v. Pacific Plans Inc., et al., GR 193108, 10 December
3.5.11. During Pendency of Petition: Loans and 2014)
Obligations (RA 10142, Sec 55-57) 3.5.15. Amendments to the Approved Rehabilitation Plan (AM 12-
3.5.12. Avoidance Proceedings (RA10142, Sec 58, 59; AM12-12-11, 12-11, Sec 72; Victorio-Aquino v. Pacific
Sec 57, 58) Plans Inc., et al., GR 193108, 10 December 2014)
3.5.13. Rehabilitation Plan (RA10142, Sec 4(ii), 63) 3.5.16. Termination of Proceedings (RA 10142, Sec 74)
3.5.13.1. Contents (RA10142, Sec 62; AM 12-12-11, Sec 61; 3.5.16.1. Effects of Termination RA 10142, Sec 75;
Philippine Bank of Communications v. Basic AM 12-12-11, Sec 74)
Polyprinters and Packaging Corporation, G.R. No.
187581, 20 October 2014)

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3.6. OUT-OF-COURT OR INFORMAL pre negotiated RR w/c has been endorsed or approved by
RESTRUCTURING AGREEMENTS OR REHABILITATION PLANS the creditors holding at least 2/3 of the total liabilities of the
3.6.1. Minimum Requirements (RA 10142, Sec 83, 84; AM 12-12-11, debtor, including secured creditors holding more than 50%
Rule 4, Sec 1, 4) of the total secured claims of the debtor and unsecured
3.6.2. Standstill Period (RA 10142, Sec 85; AM 12-12-11, Rule 1, Sec creditors holding more than 50% of the total unsecured
5(q); AM 12-12-11, Rule 4, Sec 3. EXPIRATION OF THE claims of the debtor. The petition shall include as a
STANDSTILL PERIOD – minimum:
3.6.3. Cramdown Effect (RA 10142, Sec 86; AM 12-12-11, Rule 4, Sec a. A schedule of the debtor’s debts and liabilities
5) b. Inventory of the debtor’s assets
3.6.4. Amendment or Modification (RA 10142, Sec 87; AM c. The pre-negotiated RP, including the names of at least 3
12-12-11, Rule 4, Sec 6) nominees for RR
3.6.5. Court Action or Other Proceedings d. A summary of disputed claims against the debtor and a
3.6.5.1. Court Assistance (RA 10142, Sec 88, 89; AM 12-12- report on the provisioning of funds to account for the
11, Rule 4, Sec 7-10) appropriate payments should any claims be ruled valid or
3.6.5.2. Petition for annulment of the standstill agreement or their amount adjusted.
the OCRA (AM 12-12-11, Rule 4, Sec 8, 11)
3.6.5.3. Effect of Court Action or Other Proceedings (RA AM 12-12-11, Rule 3, Sec 1)
10142, Sec 88)
3.6.5.4. Proceedings After Petition: Service of Summons Pre-Negotiated rehabilitation plan- An insolvent debtor, by itself or
(AM 12-12-11, Rule 4, Sec. 12); jointly with any of its creditors, may file a verified petition
Comment or Opposition (AM 12-12-11, Rule 4, with the court for the approval of a pre-negotiated
Sec. 13); Court Order on Petition(AM 12-12-11, rehabilitation plan.
Rule 4, Sec. 14);
The petition shall comply with section 2(A) Rule 2 of the
Hearing(AM 12-12-11, Rule 4, Sec 15);
rules, where applicable, and be supported by an affidavit
Review of Decision or Order (AM 12-12-11,
showing the written approval or endorsement of creditors
Rule 4, Sec 16)
holding at least 2/3 of the total liabilities of the debtor,
including secured creditors holding more than 50% of the
3.7. PRE-NEGOTIATED REHABILITATION
total unsecured claims of the debtor Further, the petition
3.7.1. Initiation (RA 10142, Sec 76;
shall also include as a minimum the following:
a. A schedule of debts and labilities w/c list all the creditors
An insolvent debtor, by itself or jointly with any of its creditors may
of the debtor, including the name and last known
file a verified petition with the court for the approval of a
address of record of each creditor, the amount of each

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claim as to principal, interest, or penalties due 30 days c. A summary of disputed claims against the debtor and a
prior to the date of filing. The nature of the claim, and report on the provisioning of funds to account for
any pledge, lien, mortgage, judgment or other security appropriate payments should and such claims be ruled
given for this payment thereof. valid or their amounts adjusted.
d. An affidavit of general financial condition which shall
b. An inventory of Asset which must list with reasonable contain answers to the questions or matters prescribed
particularity all the assets of the debtor, whether in the in Anne “A” of these rules,
possession of the debtor or a 3 rd parties, stating the e. A pre negotiated RP including the names at least 3
nature of each assets, its location and condition, its book qualified nominees for RR.
value and market value, and attaching the
corresponding certified copy of the certificate of title All attachments to the petition shall be deemed part and
thereof in case of real property, or the evidence of title parcel of the verified petition.
or ownership in case of movable property, the
encumbrances, liens or claims thereon, if any, and the
identities and or claims thereon, if any and the identities 3.7.2. Court Orders and Approval of Plan (RA 10142, Sec 76;
and addresses of the lien holders and claimants. The An insolvent debtor, by itself or jointly with any of its creditors may
inventory shall include: file a verified petition with the court for the approval of a
pre negotiated RR w/c has been endorsed or approved by
1. A schedule of A/R which must indicate, which must the creditors holding at least 2/3 of the total liabilities of the
indicate the amount of each account, the person debtor, including secured creditors holding more than 50%
from whom due and their correct addresses, the of the total secured claims of the debtor and unsecured
dates of maturity, and the potential for collectability creditors holding more than 50% of the total unsecured
categorizing them as highly collectible to remotely claims of the debtor. The petition shall include as a
collectible and minimum:
2. A schedule of exiting claims against 3 rd parties which a. A schedule of the debtor’s debts and liabilities
must indicate the name and the last address of b. Inventory of the debtor’s assets
record of each third party against whom the debtor c. The pre-negotiated RP, including the names of at least 3
has a claim, the nature and amount of the claim, nominees for RR
including the principal, interest, or penalties due d. A summary of disputed claims against the debtor and a
from each third party and any pledge, lien, report on the provisioning of funds to account for the
mortgage, judgment or other security or collateral appropriate payments should any claims be ruled valid or
given for the payment of each claim and a brief their amount adjusted.
statement of the facts which gave rise to the claim.

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J. Impose a suspension order as described in this rules.

AM 12-12-11, Rule 3, Sec 2) K. Direct the service by personal delivery of a copy of the
petition on each creditor who is not a petitioner holding at
Issuance of order- w/in 5 working days from the date of filing least 10% of the total liabilities of the debtor, as determined
petition, if the court determines that the petition is sufficient in the schedule attached to the petition, w/in 3 days from
in form and substance, it shall issue an order. the issuance of the order.
A. identify the debtor, its principal business or activities and its
principal place of business 3.7.2.1. Order (RA 10142, Sec 77;
B. Declare that the debtor is under rehabilitation W/in 5 working days and after determination that the position is
C. Summarize the ground/s for the filing of the petition sufficient in form and substance, the court shall issue an order w/c
D. Direct the publication of the order in a newspaper of general shall
circulation in the Philippines once a week for 2 consecutive
weeks, w/ the 1st publication w/in 7 day from the time of the a. Identify the debtor, its principal business of activity/ies and
issuance. its principal place of business
E. Direct the service by personal delivery of a copy of the b. Declare that the debtor in under rehabilitation
petition on each creditor who is not a petitioner holding at c. Summarize the ground/s for the filing of the petition
least 10% of the total liabilities of the debtor, as determined d. Direct the publication of the order in a newspaper of general
in the schedule attached to the petition w/in 3 days from the circulation in the Philippines once a week for at least 2
issuance of the order. consecutive weeks, with the 1st publication to be made w/in
F. State that copies of the petition and the pre-negotiated Pre 7 weeks days from the time of issuance
Negotiated RP are available for examination and copying by e. Direct the service by personal delivery of a copy of the
any interested party petition on each creditor who is not a petitioner holding at
G. State if there is no verified objection to the petition or the least 10% of the total liabilities of the debtor, as determined
pre-negotiated RP is submitted with the court w/in 8 days in the schedule attached to the petition , within 3 days
from the date of the 2nd publication of the order required f. State that copies of the petition and the RP are available for
under section D above, the court shall approve the pre- examination and copying by any interested party.
negotiated w/in 10 days from the date of the 2 nd publication g. State that creditors and other interested parties opposing
of the order, pursuant to section 4 of this rule. the petition or RP may file their objections or comments
H. State the creditors and other interested parties may submit thereto w/in a period of not later than 20 days from the 2 nd
their comments on the petition or the pre-negotiated RP publication of the order.
w/in a period of not later than 20 days from the second h. Appointment of RR, if provided for in the RP
publication of the order, under section 6 of this rule. i. Include a suspension or stay order as describe in this act.
I. Appoint a RR, if not provided for in the Pre-Negotiated RP

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from the second publication of the order, under section

6 of this rule.
I. Appoint a RR, if not provided for in the Pre-Negotiated
AM 12-12-11, Rule 3, Sec 2, RP
Issuance of order- w/in 5 working days from the date of filing J. Impose a suspension order as described in this rules.
petition, if the court determines that the petition is sufficient K. Direct the service by personal delivery of a copy of the
in form and substance, it shall issue an order. petition on each creditor who is not a petitioner holding
A. identify the debtor, its principal business or activities at least 10% of the total liabilities of the debtor, as
and its principal place of business determined in the schedule attached to the petition,
B. Declare that the debtor is under rehabilitation w/in 3 days from the issuance of the order.
C. Summarize the ground/s for the filing of the petition
D. Direct the publication of the order in a newspaper of Sec 3) Effectivity and duration of order.
general circulation in the Philippines once a week for 2 It shall retroact to the date of the filing of the petition and shall be
consecutive weeks, w/ the 1st publication w/in 7 day effective for one hundred and twenty (120) days from the fling of
from the time of the issuance. the petition unless earlier lifted by the court on account of a)
E. Direct the service by personal delivery of a copy of the approval of the pre negotiated RP or B) the termination of the Rehab
petition on each creditor who is not a petitioner holding proceedings.
at least 10% of the total liabilities of the debtor, as
determined in the schedule attached to the petition 3.7.2.2. Objections or Comments (RA 10142, Sec.
w/in 3 days from the issuance of the order. 79, Objection to the petition or RP, Any creditor or other interested
F. State that copies of the petition and the pre-negotiated party may submit to the court a verified objection to the petition of
Pre Negotiated RP are available for examination and the RP not later than 8 days from the date of the 2 nd publication of
copying by any interested party the order mentioned in sec 77 hereof. The objections shall be limited
G. State if there is no verified objection to the petition or to the following:
the pre-negotiated RP is submitted with the court w/in 8 a. The allegations in the petition of the RP or the attachments
days from the date of the 2 nd publication of the order thereto are materially false or misleading:
required under section D above, the court shall approve b. The majority of any class of creditors do not in fact support
the pre-negotiated w/in 10 days from the date of the 2 nd the RP
publication of the order, pursuant to section 4 of this c. The RP fails to accurately account for a claim against the
rule. debtor and the claim is not categorically declared as a
H. State the creditors and other interested parties may contested claim;
submit their comments on the petition or the pre- d. The support of the creditors, or any of them was induced by
negotiated RP w/in a period of not later than 20 days fraud.

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Copies of any objection to the petition of the RP shall be served on If the court finds that the debtor or creditors supporting the pre-
the debtor, the RR if applicable) the secured creditor w/ the largest negotiated RP acted I bad faith, or that the objection is non-curable,
claim an who supports the RP and the unsecured creditor w/ the the court may convert the rehabilitation proceedings into
largest claim and who support the RP liquidation.

A finding by the court that the objection has a substantial merit or

Sec. 80 that the same has been cured shall be deemed an approval of the
Hearing on the objection – After receipt of an objection, the court pre negotiated RP.
shall set the same for hearing. The date of hearing shall be no earlier
than 20 days and no later than 30 days from the date of the 2 nd 3.7.2.3. Approval of Pre-Negotiated Rehabilitation
publication of the order. If the court finds merit in the objection, it Plan (RA 10142, Sec 78,
shall direct the debtor, when feasible to cure the defect within a W/in 10 days from the date of the 2 nd publication of the order, the
reasonable period. If the court determines that the debtor or court shall approve the RP unless a creditor or other interested
creditor supporting the RP acted in bad faith, or the objection is non party submits an objection to it in accordance with the next
curable the court may order the conversion of the proceedings into succeeding section.
liquidation. A finding by the court that the object has no substantial
merit or the same has been cured shall be deemed an approval of Sec 81,
the RP. Period of approval of RP- the court shall have a minimum period of
one hundred twenty days from the date of the filing of the petition
AM 12-12-11, Rule 3, Sec 6, Any creditor or other interested party to approve the RP. If the court fails to act w/in the said period the
may submit his comments on the petition or the Pre-Negotiated RP RP shall be deemed approved.
based on grounds other than those enumerated in Section 5 of this
rule. Sec 82,
Effect of Approval- Approval of a plan under this chapter shall have
SEC 7, Hearing on the objection and comments- After receipt of the same legal effect as confirmation of a plan under Chapter II of
objection under section 5 and comments under sec 6, both of this this act.
rule, the court shall set the case for hearing not earlier than 20 days
nor later than 30 days from the date of the second publication of the ; AM 12-12-11, Rule 3, Sec 4, Approval of the plan if no verified
issued pursuant to section 2 of this rule. If the court finds the objection to the petition or the RP is filed w/in 8 days from the date
objection meritorious it shall direct the debtor to cure the defect of the second publication of the order provided in the preceding
w/in 15 days from receipt of the order. section, the court shall approved the rehabilitation plan w/in 10
days from the date of the 2nd publication of such order.

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The approved RP shall not be implemented until after the lapse of For purposes of this section, trade related assets include cash,
20 days from the date of the 2 nd publication of the order, unless the securities, trading right and other owned and used by the security
court conducts a hearing pursuant to section 7 of this rule to market participant in the ordinary course of this business.
consider the comments filed w/in 20 days from date of the 2 nd
publication of the order. 138;
AM 15-04-06, RULE 4, SEC 30) same
Sec 8, The court shall have a maximum period of 120 days from the 4.1.Corporate Liquidation (Corporation Code, Sec. 122, (now sec 39))
filing of the petition to approve or disapprove the pre-negotiated every corporation whose charter expires pursuant to its
RP filed under this Rule. articles of incorporation, is annulled by forfeiture, or whose
corporate existence is terminated in any other manner, shall
nevertheless remain as a body corporate for three (3) years
If the court fails to act w/in the said period, the pre-negotiated RP
after the effective date of dissolution, for the purpose of
shall be deemed approved. In such a case, the court shall certify
prosecuting and defending suits by or against it and enabling
that no action has been made w/in 120 days period and the pre- it to settle and close its affairs, dispose of and convey its
negotiated RP is deemed approved pursuant to section 81 of this property, and distribute its assets, but not for the purpose of
act. continuing the business for which it was established. At any
time during said three (3) years, the corporation is
Sec 9, Effect of the approval of the rehabilitation plan. authorized and empowered to convey all of its property to
Approval of the pre-negotiated RP under this rule shall have the trustees for the benefit of stockholders, members, creditors
and other persons in interest. After any such conveyance by
same legal effect as confirmation of a RP under section 66 rule 2 of
the corporation of its property in trust for the benefit of its
these rule
stockholders, members, creditors and others in interest, all
interest which the corporation had in the property
terminates, the legal interest vests in the trustees, and the
IV. LIQUIDATION OF INSOLVENT JURIDICAL DEBTOR; LIQUIDATION beneficial Page 58 of 73 interest in the stockholders,
OF A SECURITIES MARKET PARTICIPANT members, creditors or other persons-in-interest. Except as
(RA 10142, SEC 136, otherwise provided for in Sections 93 and 94 of this Code,
Liquidation of Security Market Participant- The foregoing provisions upon the winding up of corporate affairs, any asset
distributable to any creditor or stockholder or member who is
of the chapter shall be w/o prejudice to the power of the regulatory
unknown or cannot be found shall be escheated in favor of
agency or self-regulating organization to liquidate trade related
the national government. Except by decrease of capital stock
claims of client or customers of a security market participant w/c for and as otherwise allowed by this Code, no corporation shall
purpose of investor protection, are hereby deemed to have absolute distribute any of its assets or property except upon lawful
priority over the claims of whatever nature or kind insofar as trade dissolution and after payment of all its debts and liabilities.
related assets are concerned.

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4.8.2.3. Powers, Duties and Responsibilities: As Regards the

4.2. Nature of Proceedings (AM 15-04-06, Rule 1, Sec 3; BPI v. Property (RA 10142, Sec 119; AM 15-04-06, Rule
SEC, GR 164641, 20 December 2007) 4, Sec 12, 13): Determination of Claims (RA
10142, Sec
123-126; AM 15-04-06, Rule 4, Sec 17-20);
4.3. Liquidation of Securities Market Participant (RA 10142, Death of a Claimant to a Petition (RA 10963,
Sec 136, 137; Rule 4, Sec 30) Sec 84, BIR RR 12-2018, Sections 2, 6)
4.8.2.4. Reporting Requirements (RA 10142, Sec 121; AM 15-
04-06, Rule 4, Sec 15)
4.4. Liquidation of Banks, Financial Institutions, Insurance 4.8.2.5. Compensation of Liquidator (RA 10142,
Companies and Pre-Need Companies (RA 10142, Sec 138; Section 120; AM 15-04-06, Rule 4, Sec 14)
Balayan Bank Rural Bank v. National Livelihood 4.8.2.6. Removal of Liquidator (RA 10142, Section 119; AM
Development Corporation, G.R. No. 194589, 21 September 15-04-06, Rule 4, Sec 12, 13)
2015) 4.9. Avoidance Proceedings (RA 10142, Sec 127, 128; AM 15-04-
4.5. Voluntary Liquidation, How Initiated (RA 10142, Sec 90, AM 15- 06, Rule 4, Sec 21, 22)
04-06, Rule 2, Sec 1, 2) 4.10. Liquidation Plan
4.6. Involuntary Liquidation, How Initiated (RA 10142, Sec 4.10.1. Court Approval (RA 10142, Sec 129, 132; AM
91, 92; AM 15-04-06, Rule 2, Sec 4-7) 15-04-06, Rule 4, Sec 23)
4.7. Liquidation Order (RA 10142, Sec 112; AM 15-04-06, Rule 4, 4.10.2. Guides
Sec 2) 4.10.2.1. Set apart exempt property(RA 10142, Sec 130; AM
4.7.1. Effects of the Liquidation Order (RA 10142, Sec 113, 114; AM 15-04-06, Rule 4, Sec 24)
15-04-06, Rule 4, Sec 3-7; Yngson v. PNB, 4.10.2.2. Sale of Property (RA 10142, Sec 131; AM 15-04-06,
G.R. No. 171132, 15 August 2012) Rule 4, Sec 26)
4.8. Liquidator 4.10.2.3. Concurrence and Preference of Credits (RA 10142,
4.8.1. Philippine Deposit Insurance Corporation Sec 133; AM 15-04-06, Rule 4, Sec 25)
4.8.2. Liquidator under FRIA (RA 10142, Sec 118; AM 15- 4.11. Termination of Liquidation Proceedings (RA 10142, Sec 122,
04-06, Rule 4, Sec 8) 134, 135; AM 15-04-06, Rule 4, Sec 16, 28,
4.8.2.1. Manner of Coming into Position (RA 10142, 29)
Sections 115; AM 15-04-06, Rule 4, Sec 9; RA
10142, Sec 116 AM 15-04-06, Rule 4,
Sec 10) V. INSOLVENCY OF INDIVIDUAL DEBTORS (AM 12-12-11SC, Sec. 5(c);
4.8.2.2. Oath and Bond of a Liquidator (RA 10142, Metropolitan Bank and Trust Company v. S.F. Naguiat
Section 117; AM 15-04-06, Rule 4, Sec 11) Enterprises, G.R. No. 178407, 18

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March 2015) 5.3.3. Default; Absent Debtor; Sheriff’s Taking of Property;

Sale of Property Under Custody (RA 10142, Sec 107-
5.1. Suspension of Payments 110; AM 15-04-06, Rule 3, Sec 18-23)
5.1.1. Nature of Proceedings (AM 15-04-06, Rule 1, Sec 3)
5.1.2. Petition (RA 10142, Sec 94; AM 15-04-06, Rule 3, Sec 1)
5.1.2.1. Court Orders: Suspension of Actions; Suspension VI. LIABILITY IN CONNECTION WITH
of Pending Execution (RA 10142, Section 95, 96; INSOLVENCY, SUSPENSION OF PAYMENTS AND REHABILITATION
AM 15-04-06, Rule 3, Sec 2, 3. CASES
5.1.2.2. Residual Powers (RA 10142, Section 96; AM 15-04- 6.1. Criminal (RA 10142, Section 145)
06, Rule 3, Sec 10) 6.2. Civil (AM 12-12-11, Rule 1, Sec 11, AM 15-04-06, Rule
5.1.3. Creditors’ Meeting 1, Sec 8)
5.1.3.1. Who Presides; Qualifications (AM 15-04-06, Rule 3,
Sec. 5)
5.1.3.2. Meeting Proper VII. CROSS BORDER INSOLVENCY PROCEEDINGS
5.1.3.2.1. Voting Procedures (RA 10142, Sec 97; AM 15-04- 7.1. Uncitral Model Law on Cross-Border Insolvency (RA 10142,
06, Rule 3, Sec 6) Section 139)
5.1.3.2.2. Rejection (RA 10142, Sec 99; AM 15-04-06, Rule 3, 7.2. Scope of Application (12-12-11, Rule 5, Sec 1, AM 1504-06, Rule
Sec 7) 1, Sec 7)
5.1.3.2.3. Approval; Objections to Approval; Effects of (AM 12-12-11, Rule 1, Sec 5(g), 5(j)
Approval (RA 10142, Sec 100-102; AM 15-04-06, 7.3. Rules on Reciprocity (12-12-11, Rule 5, Sec 4)
Rule 3, Sec 8, 9) 7.4. Authorization of Rehabilitation Receiver to Act in a Foreign State
5.1.3.3. Persons Who May Refrain From Attending and (AM 12-12-11, Rule 5, Sec 2)
Voting During Creditors’ Meeting (RA 10142, 7.5. Foreign Creditors’ Access to Proceeding under PH Financial
Sec98; AM 15-04-06, Rule 3, Sec. Rehabilitation Rules (AM 12-12-11, Rule 5, Sec 3)
4) 7.6. Petition for Recognition of Foreign Proceeding (RA 10142, Sec.
140; AM 12-12-11, Rule 5, Sec 5-7, 8, 9; RULE 5, SEC.5(h),
5.2. Voluntary Liquidation (RA 10142, Sec 103, 104; 6(i))
AM 15-04-06, Rule 3, Sec 11, 13) 7.6.1. Duties and Powers of the Foreign Representative (AM 12-12-
11, Rule 5, Sec 10, 16, 17)
5.3. Involuntary Liquidation
7.6.2. Effects of Recognition (AM 12-12-11, Rule 5, Sec 12)
5.3.1. Petition (RA 10142, Sec 105;AM 15-04-06, Rule 3, Sec 13, 14)
5.3.2. Order to Show Cause (RA 10142, Sec 106.; AM 1504-06, Rule
3, Sec 15)

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7.6.3. Reliefs that may be Granted; Factors in Determining Grant of

Relief (RA 10142, Sec 141; AM 12-12-11, Rule 5, Sec 11, 13-
15)
7.7. Cooperation between Rehabilitation Receiver or Liquidator
and Foreign Courts or Foreign
Representatives (AM 12-12-11, Rule 5, Sec 19, 20;
(AM 12-12-11, Rule 5, Sec 21, 22)

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