0% found this document useful (0 votes)

43 views40 pages

E-Scra FRIA Annotated

Uploaded by

gracegranil.11

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

43 views40 pages

E-Scra FRIA Annotated

Uploaded by

gracegranil.11

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 40

9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

ANNOTATION

REPUBLIC ACT NO. 10142

(AN ACT PROVIDING FOR THE REHABILITATION
OR LIQUIDATION OF FINANCIALLY DISTRESSED
ENTERPRISES AND INDIVIDUALS)

THE “FINANCIAL REHABILITATION AND

INSOLVENCY ACT (FRIA) OF 2010” AND THE
FINANCIAL REHABILITATION RULES OF
PROCEDURE
(AM No. 12-12-11-SC)

LARRY P. IGNACIO*
___________________

§ 1. Rehabilitation in general, p. 603

§ 2. Declaration of Policy under the FRIA, p. 606
§ 3. Construction of the FRIA Rules (F-Rules) (AM
No. 12-12-11-SC), p. 606
§ 4. Nature of Proceedings, p. 607
§ 5. Coverage, Exclusion and Applicability, p. 611
§ 6. Remedies under the FRIA, p. 613
§ 7. Court Supervised Rehabilitation (CSR), p. 613
§ 8. Administration of the Proceedings, p. 614
§ 9. Time bar rule, p. 615

* Private Practitioner, Law Professor (San Sebastian College, New Era

University, University of the East), Asst. Prof. Lecturer, DLSU-Taft, Bar
Reviewer, MCLE Lecturer.

602

602 SUPREME COURT REPORTS ANNOTATED

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 1/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR

THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND
INDIVIDUALS)The “Financial Rehabilitation and
Insolvency Act (FRIA) of 2010” and The Financial
Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

§ 10. Parri Passu Principle, p. 617

§ 11. Rulings on what is a claim that may be
included in the stay order, p. 618
§ 12. “Claims” that are not suspended, p. 622
§ 13. Stay order applies only to those who are in the
category of debtor and creditor, p. 623
§ 14. Rehabilitation will not deprive corporate
officers and directors of control of the
corporation, p. 624
§ 15. Effectivity and duration of suspension/stay
order, p. 624
§ 16. Effect of stay order on the security of the
secured creditors, p. 624
§ 17. Stay order will not oust a court of its
jurisdiction over a case filed before it; the case
will only be suspended, p. 625
§ 18. Verified notice of claim and the failure of the
creditor to file a notice of claim, p. 625
§ 19. Modification of suspension of payments, p. 626
§ 20. Initial hearing, p. 626
§ 21. Additional hearings, p. 626
§ 22. Action of the rehabilitation receiver, p. 627
§ 23. Determination of claims, p. 627
§ 24. Action of the court upon receipt of the
rehabilitation report, p. 628
§ 25. The Rehabilitation Receiver, p. 628
§ 26. Immunity from suit, p. 629
§ 27. Post-Commencement Date Actions, p. 629
§ 28. Liability of Directors and Officers, p. 631
§ 29. The rehabilitation plan and the “cram-down”
power, p. 631

603

VOL. 848, DECEMBER 13, 2017 603

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND
INDIVIDUALS)The “Financial Rehabilitation and
Insolvency Act (FRIA) of 2010” and The Financial
Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 2/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

§ 30. Pre-Negotiated Rehabilitation (PNR), p. 634

§ 31. Out-of-court or Informal Restructuring
Agreements or Rehabilitation Plans (OCRA), p.
636
§ 32. Liquidation in Insolvency, p. 638
§ 33. Cross-Border Insolvency, p. 640
___________________

SALIENT FEATURES & CASES

§ 1. Rehabilitation in general

Rehabilitation shall refer to the restoration of the debtor

to a condition of successful operation and solvency (Sec. 4,
FRIA).
Restoration is the central idea behind the remedy of
corporate rehabilitation. In common parlance, to “restore”
means “to bring back to or put back into a former or
original state.” Case law explains that corporate
rehabilitation contemplates a continuance of corporate life
and activities in an effort to restore and reinstate the
corporation to its former position of successful operation
and solvency, the purpose being to enable the company to
gain a new lease on life and allow its creditors to be paid
their claims out of its earnings (BPI Family Savings Bank,
Inc. v. St. Michael Medical Center, Inc., G.R. No. 205469,
25 March 2015, 754 SCRA 493).
Rehabilitation assumes that the corporation has been
operational but for some reasons like economic crisis or
mismanagement had become distressed or insolvent, i.e.,
that it is generally unable to pay its debts as they fall due
in the ordinary course of business or has liability that are
greater than its assets. Thus, the basic issues in
rehabilitation proceedings concern the viability and
desirability of continuing the business operations of the
distressed corporation, all with

604

604 SUPREME COURT REPORTS ANNOTATED

a view of effectively restoring it to a state of solvency or to

its former healthy financial condition through the adoption

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 3/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

of a rehabilitation plan (id.).

Rehabilitation contemplates a continuance of corporate
life and activities in an effort to restore and reinstate the
corporation to its former position of successful operation
and solvency (New Frontier Sugar Corporation v. Regional
Trial Court, Branch 39, Iloilo City, G.R. No. 165001, 31
January 2007, 513 SCRA 601; Metropolitan Bank & Trust
Company v. ASB Holdings, Inc., G.R. No. 166197, 27
February 2007, 517 SCRA 1).
A rehabilitation case is commercial in nature that
should be resolved expeditiously for the benefit of all
parties concerned and the economy in general (id.).

A. Purpose of Rehabilitation

Rehabilitation proceedings have two-pronged purpose,

namely: (a) to sufficiently and equitably distribute the
assets of the insolvent debtor to its creditors; and (b) to
provide the debtor with a fresh start (Philippine Bank of
Communications v. Basic Polyprinters and Packaging
Corporation, G.R. No. 187581, 20 October 2014; 738 SCRA
561, Asiatrust Development Bank v. First Aikka Asiatrust
Development, Inc., G.R. No. 179558, 1 June 2011, 650
SCRA 172).
The purpose of rehabilitation proceedings is not only to
enable the company to gain a new lease on life but also to
allow creditors to be paid their claims from its earnings,
when so rehabilitated (BPI Family Savings Bank, Inc. v.
St. Michael Medical Center, Inc., G.R. No. 205469, 25
March 2015, 754 SCRA 493).

605

VOL. 848, DECEMBER 13, 2017 605

B. Ultimate and prime consideration

in rehabilitation

While the voice and participation of the creditors is

crucial in the determination of the viability of the
rehabilitation plan, as they stand to benefit or suffer in the
implementation thereof, the interests of all stakeholders is
the ultimate and prime consideration (Victorio-Aquino v.

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 4/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

Pacific Plans, Inc., G.R. No. 193108, 10 December 2014,

744 SCRA 480).

C. Rehabilitation is not a refuge of

a debtor guilty of fraud

The protective remedy of rehabilitation was never

intended to be a refuge of a debtor guilty of fraud (Banco
De Oro-EPCI, Inc. v. JAPRL Development Corporation,
G.R. No. 179901, 14 April 2008, 551 SCRA 342).
Rehabilitation proceedings in our jurisdiction, much like
the bankruptcy laws of the United States, have equitable
and rehabilitative purposes. On the one hand, they attempt
to provide for the efficient and equitable distribution of an
insolvent debtor’s remaining assets to its creditors; and on
the other, to provide debtors with a “fresh start” by
relieving of the weight of their outstanding debts and
permitting them to reorganize their affairs (Bank of the
Philippine Islands v. Securities and Exchange Commission,
G.R. No. 164641, 20 December 2007, 541 SCRA 294, citing
US cases).

D. Basic issue in rehabilitation

The basic issues in rehabilitation proceedings concern

the viability and desirability of continuing the business
operations of the petitioning corporation (Philippine Bank
of Communications v. Basic Polyprinters and Packaging
Corporation, G.R. No. 187581, 20 October 2014, 738 SCRA
561).

606

606 SUPREME COURT REPORTS ANNOTATED

E. Material financial requirement is

essential in rehabilitation

A material financial commitment becomes significant in

gauging the resolve, determination, earnestness and good
faith of the distressed corporation in financing the proposed
rehabilitation plan. This commitment may include the
voluntary undertakings of the stockholders or the would-be

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 5/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

investors of the debtor-corporation indicating their

readiness, willingness and ability to contribute funds or
property to guarantee the continued successful operation of
the debtor corporation during the period of rehabilitation (
BPI Family Savings Bank, Inc. v. St. Michael Medical
Center, Inc., G.R. No. 205469, 25 March 2015, 754 SCRA
493).

§ 2. Declaration of Policy under the FRIA

The State encourages debtors, both juridical and natural

persons, and their creditors to collectively and realistically
resolve and adjust competing claims and property rights. In
furtherance thereof, the State shall ensure a timely, fair,
transparent, effective and efficient rehabilitation or
liquidation of debtors (Sec. 2, FRIA).

§ 3. Construction of the FRIA Rules (F-Rules) (AM

No. 12-12-11-SC)

The F-Rules shall be liberally construed to promote a

timely, fair, transparent, effective, and efficient
rehabilitation of debtors, in accordance with the declared
policy of the FRIA (Sec. 3, Rule 1, F-Rules).

§ 4. Nature of Proceedings

The proceedings under FRIA shall be in rem in nature

and shall be conducted in a summary and non-
adversarial

607

VOL. 848, DECEMBER 13, 2017 607

matter. It covers all persons affected upon publication in a

newspaper of general circulation (Sec. 3, FRIA).
Jurisdiction over all persons affected by the proceedings
is acquired upon publication of the notice of the
commencement of the proceedings and the commencement
order or any similar order of the proceedings in one (1)
newspaper of general circulation in the Philippines for two

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 6/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

(2) consecutive weeks. The proceedings shall be summary

and non-adversarial in nature (Sec. 4, Rule 1, F-Rules).
“In rem” – A technical term used to designate
proceedings or actions instituted against the thing, in
contradistinction to personal actions, which are said to be
in personam (Black’s Law Dictionary, 6th ed).
Rehabilitation proceedings are summary and non-
adversarial in nature, and do not contemplate adjudication
of claims that must be threshed out in ordinary court
proceedings (Advent Capital and Finance Corporation v.
Alcantara, G.R. No. 183050, January 25, 2012, 664 SCRA
224).
A rehabilitation case is commercial in nature that
should be resolved expeditiously for the benefit of all
parties concerned and the economy in general (New
Frontier Sugar Corporation v. Regional Trial Court,
Branch 39, Iloilo City, G.R. No. 165001, 31 January 2007,
513 SCRA 601; Metropolitan Bank & Trust Company v.
ASB Holdings, Inc., G.R. No. 166197, 27 February 2007,
517 SCRA 1).
Rehabilitation proceedings in our jurisdiction, much like
the bankruptcy laws of the United States, have equitable
and rehabilitative purposes. On the one hand, they attempt
to provide for the efficient and equitable distribution of an
insolvent debtor’s remaining assets to its creditors; and on
the other, to provide debtors with a “fresh start” by
relieving of the weight of their outstanding debts and
permitting them to reorganize their affairs (Bank of the
Philippine Islands v.

608

608 SUPREME COURT REPORTS ANNOTATED

Securities and Exchange Commission, G.R. No. 164641, 20

December 2007, 541 SCRA 294, citing US cases).
Court may approve a rehabilitation plan even over the
opposition of creditors holding a majority of the total
liabilities of the debtor (Pacific Wide Realty and
Development Corporation v. Puerto Azul Land, Inc., G.R.
No. 178768, 605 SCRA 503, 25 November 2009, 605 SCRA
502).

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 7/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

A. Notification to foreign creditors

Whenever notice is to be given to creditors in the

Philippines, such notice shall also be given to the known
foreign creditors with no addresses in the Philippines. The
court may order that appropriate steps be taken with a
view to notifying any foreign creditor whose address is not
yet known (Sec. 7, Rule 1, F-Rules).

B. Prohibited pleadings

The following pleadings are prohibited:

(a) motion to dismiss;
(b) motion for a bill of particulars;
(c) petition for relief;
(d) motion for extension;
(e) motion for postponement and other motions of
similar intent;
(f) reply;
(g) rejoinder;
(h) intervention; and
(i) any pleading or motion that is similar to or of like
effect as any of the foregoing.
(Sec. 4, Rule 1, F-Rules)

609

VOL. 848, DECEMBER 13, 2017 609

C. When motion for extension/postponement

is allowed

For stated and fully supported compelling

reasons, the court may allow the filing of motions for
extension or postponement, provided, the same shall be
verified and under oath (id.).

D. Any motion/pleading shall be verified

Any pleading, motion, or other submission submitted by

any interested party shall be supported by verified
statements that the affiant has read the submission and its
factual allegations are true and correct of his personal

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 8/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

knowledge or based on authentic records, and shall contain

supporting annexes, which the submitting party shall
attest as faithful reproductions of the originals. An
unverified submission shall be considered as not filed. An
improperly verified submission may be considered as not
filed, at the discretion of the judge. Upon motion, the
originals of the annexes to a submission may be produced
in court for examination or comparison by a party to the
proceedings.
All pleadings or motions shall be filed in three (3)
printed and two (2) digital copies in CD format. Annexes to
the pleadings and other submissions shall be in printed
form.
The court may decide matters on the basis of affidavits,
counter-affidavits, and other documentary evidence,
conducting clarificatory hearings when necessary (id.).

E. Any order is immediately executory

Any order issued by the court under the F-Rules is

immediately executory. Review of any order of the court
shall be in accordance with Rule 6 of the Rules. Provided,
however, that the reliefs ordered by the trial or appellate
courts shall

610

610 SUPREME COURT REPORTS ANNOTATED

take into account the need for resolution of the proceedings

in a just, equitable, and speedy manner (id.).
In a case, it was ruled that a motion for new trial or
reconsideration is a prohibited pleading (BPI Family
Savings Bank, Inc. v. Pryce Gases, Inc., G.R. No. 188365, 29
June 2011, 653 SCRA 42). However, Sec. 1, Rule 6, F-Rules
provides that a party may file a motion for reconsideration
of any order issued by the court prior to the approval of the
Rehabilitation Plan. No relief can be extended to the party
aggrieved by the court’s order on the motion through a
special civil action for certiorari under Rule 65 of the Rules
of Court. An order issued after the approval of the
Rehabilitation Plan can be reviewed only through a special

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 9/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

civil action for certiorari under Rule 65 of the Rules of

Court.
Further, an order approving or disapproving a
rehabilitation plan can only be reviewed through a petition
for certiorari to the Court of Appeals under Rule 65 of the
Rules of Court within fifteen (15) days from notice of the
decision or order (Sec. 2, Rule 6, F-Rules).
The 2013 Rules retained the guideline in the 2008 Rules
that review may be sought from the Court of Appeals (CA)
only after the rehabilitation court issues an order
approving or disapproving the rehabilitation plan (Lexber,
Inc. v. Dalman, G.R. No. 183587, 20 April 2015, 756 SCRA
34).
Contra: Under the Section 4, Rule 65 of the Rules of
Court, the petition shall be filed not later than sixty (60)
days from notice of the judgment, order or resolution, or
from notice of the denial of the motion for reconsideration.

F. Powers of officers/directors of a
corporation during rehabilitation

There is nothing in the corporate rehabilitation that

would ipso facto deprive the Board of Directors and
corporate officers of a debtor corporation of control such
that it can no

611

VOL. 848, DECEMBER 13, 2017 611

longer enforce its right to recover its property from an

errant lessee (Umale v. ASB Realty Corporation, G.R. No.
181126, 15 June 2011, 652 SCRA 215).
In Sec. 9, Rule 1, F-Rules, creditors are allowed to decide
in accordance with the relevant provisions of the
Corporation Code in the case of stock or nonstock
corporations or the Civil Code in the case of partnerships.
Venue (Sec. 6, Rule 1, F-Rules)
1) For a debtor that is a corporation, partnership or
sole proprietorship: in the Regional Trial Court which has
jurisdiction over the principal office as specified in its
articles of incorporation or partnership or in its registration
papers with the Department of Trade and Industry (DTI)

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 10/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

in cases of sole proprietorship. If located in Metro Manila,

in the Regional Trial Court of the city or municipality
where the head office is located.
2) For group of debtors: in the Regional Trial Court
which has jurisdiction over the principal office of any of the
debtors alleged to be insolvent, as specified in its articles of
incorporation or partnership, or registration papers with
the DTI in cases of sole proprietorship.

§ 5. Coverage, Exclusion and Applicability

A. Coverage

The FRIA covers insolvent individual debtor and

juridical entities duly organized and existing under
Philippine laws, and their affiliates and subsidiaries, sole
proprietorship duly registered with the DTI, a
partnership duly registered with the SEC (Sec. 4[k], FRIA);
government financial institutions other than banks
and government-owned or -controlled corporations, unless
their specific charter provides otherwise (Sec. 5, FRIA).

612

612 SUPREME COURT REPORTS ANNOTATED

B. Exclusion

The FRIA does not include within its coverage banks,

insurance companies, pre-need companies, and national
and local government agencies or units (id.).
The FRIA is unavailable to nonresident citizens and
aliens/foreigners as it covers only an “individual debtor,” a
natural person who is a resident and citizen of the
Philippines who becomes insolvent (Sec. 4[o], FRIA).
Sureties or solidary debtors are excluded. It was ruled
that a creditor can demand payment from the surety
solidarily liable with the corporation seeking rehabilitation
(Banco De Oro-EPCI, Inc. v. JAPRL Development
Corporation, G.R. No. 179901, 14 April 2008, 551 SCRA
342). In Section 10[c], Rule 1, F-Rules, the suspension or
stay order shall not apply to the enforcement of claims
against sureties and other persons solidarily liable with the

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 11/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

debtor, and third party or accommodation mortgagors as

well as issuers of letters of credit, unless the property
subject of the third party or accommodation mortgage is
necessary for the rehabilitation of the debtor as determined
by the court upon recommendation by the rehabilitation
receiver.
The issuance of stay order cannot suspend foreclosure of
accommodation mortgages (Situs Development Corporation
v. Asiatrust Bank, G.R. No. 180036, 16 January 2013, 688
SCRA 621).
The mere pendency of a petition for corporate
rehabilitation and the issuance of a stay order do not and
cannot enjoin the courts from the enforcement of claims;
neither does it make the case unique and peculiar (Bank of
the Philippine Islands v. Co, G.R. No. 171172, 9 November
2015, 774 SCRA 28).

613

VOL. 848, DECEMBER 13, 2017 613

C. Applicability

The FRIA shall apply to pending insolvency, suspension

of payments and rehabilitation cases except if not feasible
or would work injustice in the opinion of the court (Sec.
146, FRIA; Sec. 2, Rule 1, F-Rules).
The FRIA shall apply to all contracts of the debtor
regardless of the date of perfection (Sec. 147, FRIA).

D. What is insolvency?

It refers 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 has liabilities that are
greater than its or his assets (Sec. 4[p], FRIA; Sec. 5[k],
Rule 1, F-Rules).
The first insolvency contemplated above is otherwise
known as technical insolvency and the second is referred to
as actual insolvency (Philippine National Bank v. Court of
Appeals, G.R. No. 165571, 20 January 2009, 576 SCRA
537).

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 12/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

§ 6. Remedies under the FRIA

There are three (3) remedies under the FRIA: 1) court-

supervised rehabilitation (CSR), 2) pre-negotiated
rehabilitation (PNR), and 3) out-of-court or informal
restructuring agreements or rehabilitation plans
(OCRA). A debtor may also choose to directly undergo, or
convert any of the aforementioned relief into, liquidation.

§ 7. Court Supervised Rehabilitation (CSR)

A. Initiation of Proceedings

Court supervised rehabilitation (CSR) may be initiated

by either the insolvent debtor or creditor/s. An insolvent

614

614 SUPREME COURT REPORTS ANNOTATED

debtor may file a verified petition for CSR with the court.
The petition shall establish the insolvency of the debtor
and include the schedule of debts, inventory of assets,
rehabilitation plan and names of the nominees for
rehabilitation receiver (Sec. 12, FRIA).
A creditor or group of creditors with claims of at least
P1.0 million or 25% of the subscribed capital stock or
partners’ contributions of the debtor may file a verified
petition for CSR. The petition shall include the
rehabilitation plan and names of the nominees for
rehabilitation receiver (Sec. 13, FRIA). Pre-empt
Creditors may initiate a rehabilitation proceedings
based on the following grounds:
(a) there is no genuine issue of fact or law on the claim/s
of the petitioner/s, and that the due and demandable
payments thereon have not been made for at least
sixty (60) days; or
(b) the debtor has failed generally to meet its liabilities
as they fall due; or
(c) at least one creditor, other than the petitioner/s, has
initiated foreclosure proceedings against the debtor
that will prevent the debtor from paying its debts as

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 13/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

they become due or will render it insolvent (Sec. 5,

Rule 2, F-Rules).
A debtor-initiated rehabilitation is a “voluntary
rehabilitation.” A creditor-initiated rehabilitation is an “
involuntary rehabilitation.”

§ 8. Administration of the Proceedings

A. Action on the petition

If the court finds the petition sufficient in form and

substance, it will issue a commencement order within
five (5)

615

VOL. 848, DECEMBER 13, 2017 615

working days from the filing of the petition. If deficient in

form or substance, the court may, in its discretion, a) allow
the amendment or supplement of the petition, or b) to
submit the necessary documents (Sec. 15, FRIA). The court
shall dismiss the petition if the deficiency is not complied
within the extended 5-day period (Sec. 7, Rule 2, F-Rules).
The issuance of the commencement order signals the
start of the rehabilitation proceedings. The commencement
order shall, among others (a) appoint a rehabilitation
receiver, (b) prohibit the debtor’s suppliers from
withholding supply of goods and services, (c) direct all
creditors to file their claims, and (d) set the case for initial
hearing (Sec. 16, FRIA).

§ 9. Time bar rule

The creditors shall file their verified notices of claims

with the court at least five (5) days before the initial
hearing date, their failure to do so on time will bar them
from participating in the rehabilitation proceedings but
will not prejudice their right to receive distributions if
recommended by the rehabilitation receiver and approved
by the Court (Sec. 8[m], Rule 2, F-Rules).

A. Effects of the commencement order

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 14/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

The effects of the court's issuance of a Commencement

Order shall retroact to the date of the filing of the petition (
Sec. 9, Rule 2, F-Rules).

B. Issuance of suspension or stay order/effects

The commencement order (Sec. 16, FRIA) shall also

include a suspension or stay order suspending all actions or
proceedings for the enforcement of claims or judgments
against the debtor and prohibiting debtor from selling,
encumbering or disposing of any of its properties and from
mak-

616

616 SUPREME COURT REPORTS ANNOTATED

ing any payment of its liabilities (Sec. 16[q]). In Section

8[V], Rule 2, F-Rules, the Stay or Suspension Order shall:
(i) suspend all actions or proceedings in court or
otherwise, for the enforcement of all claims against
the debtor;
(ii) suspend all actions to enforce any judgment,
attachment or other provisional remedies against the
debtor;
(iii) prohibit the debtor from selling, encumbering,
transferring or disposing in any manner any of its
properties except in the ordinary course of business;
and
(iv) prohibit the debtor from making any payment of its
liabilities outstanding as of the commencement date
except as may be provided herein.
The Commencement Order and the Stay or Suspension
Order on the suspension of rights to foreclose or otherwise
pursue legal remedies shall apply to government financial
institutions, notwithstanding provisions in their charters
or other laws to the contrary (Sec. 20, FRIA).
The issuance of stay order cannot suspend foreclosure of
accommodation mortgages (Situs Development Coporation
v. Asiatrust Bank, G.R. No. 180036, 16 January 2013, 688
SCRA 621).

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 15/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

The issuance of a stay order does not affect the right to

commence actions or proceedings in order to preserve ad
cautelam a claim against the debtor and to toll the running
of the prescriptive period to file the claim (Sec. 8, last par.,
Rule 2, F-Rules).
The suspension order, however, shall not apply (Sec. 18,
FRIA):

617

VOL. 848, DECEMBER 13, 2017 617

a) to cases on appeal in the Supreme Court at the

time of the issuance of the commencement order
(Sec. 18[a], FRIA);
b) the enforcement of claims against sureties and
other persons solidarily liable with the debtor
and third party/accommodation mortgagors (Sec.
18[c], FRIA);
c) the sale by licensed brokers or dealers of
pledged securities pursuant to a securities
pledge or margin agreement (Sec. 18[e], FRIA);
and
d) any criminal action against the individual
debtor or owner, partner, director or officer of a
debtor (Sec. 18[g], FRIA).

There shall be no diminution of security or lien; they are

merely suspended during the stay order (Sec. 60, FRIA).
The issuance of stay order cannot suspend foreclosure of
accommodation mortgages (Situs Development Corporation
v. Asiatrust Bank, G.R. No. 180036, 16 January 2013, 688
SCRA 621).
Obligation of issuing bank under a letter of credit is
primary and solidary. It is not enjoined by the stay order (
Metropolitan Waterworks and Sewerage System v. Daway,
G.R. No. 160732, 21 June 2004, 432 SCRA 559).
During rehabilitation, the only payments sanctioned by
the Interim Rules are those made to creditors in accordance
with the provisions of the plan (Express Investments III v.
Bayan Telecommunications, Inc., G.R. No. 174457-59, 5
December 2012, 687 SCRA 50).

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 16/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

§ 10. Parri Passu Principle

- During rehabilitation, the assets of the distressed

corporation are held in trust for the equal benefit of

618

618 SUPREME COURT REPORTS ANNOTATED

all creditors to preclude one from obtaining an

advantage or preference over another. All creditors
should stand on equal footing.
- Both secured and unsecured creditors shall suffer
a write-off of penalties and default interest and the
escalating interest rates shall equally be imposed on
them.
- The commitment embodied in the parri passu
principle only goes so far as to ensure that the assets
of the distressed corporation are held in trust for the
equal benefit of all creditors. (Id.)

A. Treatment of contracts

All contracts not confirmed in writing by the

debtor within ninety (90) days following the issuance
of the commencement order shall be considered
automatically terminated (Sections 8[u] & 56, Rule 2, F-
Rules).

§ 11. Rulings on what is a claim that maybe

included in the stay order

A claim shall include all claims or demand of whatever

nature or character against a debtor or its property,
whether of money or otherwise (Philippine Airlines, Inc. v.
Court of Appeals, G.R. No. 150592, 20 January 2009, 576
SCRA 471).
The definition is all-encompassing as it refers to all
actions whether for money or otherwise. There are no
distinctions or exemptions (Sobrejuanite v. ASB
Development Corporation, G.R. No. 165675, 30 September
2005, 471 SCRA 763; Philippine Airlines, Incorporated v.

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 17/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

Zamora, G.R. No. 166996, 6 February 2007, 514 SCRA

584).
All actions for claims against a corporation pending
before any court, tribunal or board shall ipso facto be
suspended in whatever stage such actions may be found (
Pacific Wide

619

VOL. 848, DECEMBER 13, 2017 619

Realty and Development Corporation v. Puerto Azul Land,

Inc., G.R. No. 178768, 25 November 2009, 605 SCRA 503).
What are automatically stayed or suspended are the
proceedings of an action or suit and not just the payment of
claims — the actions that are suspended cover all claims
against a distressed corporation whether for damages
founded on a breach of contract of carriage, labor cases,
collection suits or any other claims or a pecuniary nature (
Malayan Insurance Company, Inc. v. Victorias Milling
Company, Inc., G.R. No. 167768, 17 April 2009, 586 SCRA
45).
The date when the claim arose, or when the action is
filed, is of no moment — as long as the corporation is under
a management committee or a rehabilitation receiver, all
actions for claims against it must yield to the greater
imperative or corporate rehabilitation, excepting only
claims for payment of obligations incurred by the
corporation in the ordinary course of business (id.).
Enforcement of writs of execution issued by judicial or
quasi-judicial tribunals, since such writs emanate from
“actions for claims,” likewise, be suspended (id.).
The automatic suspension of an action for claims against
a corporation under a rehabilitation receiver or
management committee embraces all phases of the suit,
that is, the entire proceedings of an action or suit and not
just the payment of claims during the execution stage after
the case had become final and executory (Castillo v.
Uniwide, G.R. No. 169725, 30 April 2010, 619 SCRA 641;
Garcia v. Philippine Airlines, Inc., G.R. No. 164856, 29
August 2007, 531 SCRA 574).
Even if the relationship is one of trust, there is no
provisions in the Interim Rules that a claim arising from a

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 18/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

trust relationship is excluded from the Stay Order — the

stay order is effective on all creditors of the corporation
without distinction, either secured or unsecured (Abrera v.
Barza, G.R. No. 171681, 11 September 2009, 599 SCRA
534).

620

620 SUPREME COURT REPORTS ANNOTATED

Even ejectment proceedings are suspended (Tyson’s

Super Concrete, Inc. v. Court of Appeals, G.R. No. 140581,
June 23, 2005, 461 SCRA 69).
§ CASE: LCI filed a petition for corporate rehabilitation.
Finding the same to be sufficient in form and substance,
the Rehabilitation Court issued a Commencement Order
dated January 13, 2012 which, inter alia: (a) declared LCI
to be under corporate rehabilitation; (b) suspended all
actions or proceedings, in court or otherwise, for the
enforcement of claims against LCI; (c) prohibited LCI from
making any payment of its outstanding liabilities as of
even date, except as may be provided under RA 10142; and
(d) directed the BIR to file and serve on LCI its comment or
opposition to the petition, or its claims against LCI. The
BIR — personally and by publication — was notified of the
rehabilitation proceedings involving LCI and the issuance
of the Commencement Order related thereto. Instead of
filing a comment or opposition, the BIR, through Misajon,
still opted to send LCI: (a) a notice of informal conference
dated May 27, 2013, informing the latter of its deficiency
internal tax liabilities for the Fiscal Year ending June 30,
2010; and (b) a Formal Letter of Demand dated May 9,
2014, requiring LCI to pay deficiency taxes in the amount
of P567,519,348.39, notwithstanding the written reminder
coming from LCI’s court-appointed receiver of the pendency
of rehabilitation proceedings concerning LCI and the
issuance of a commencement order.
The Rehabilitation court cited the BIR and Misajon in
contempt of court for defying the commencement order. The
BIR justified their action by claiming that they only
performed such acts to toll the prescriptive period for the
collection of deficiency taxes and (b) to cite them in indirect
contempt would unduly interfere with their function of

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 19/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

collecting taxes due to the government, cannot be given any

credence.

621

VOL. 848, DECEMBER 13, 2017 621

A) Can the BIR proceed to collect deficiency taxes

in spite of the issuance of a commencement
order?
B) What is the remedy of creditors in pursuing
their claims against a distressed debtor in case
of issuance of a commencement order?
A) NO. Section 16 of RA 10142 provides, inter alia,
that upon the issuance of a Commencement Order — which
includes a Stay or Suspension Order — all actions or
proceedings, in court or otherwise, for the
enforcement of “claims” against the distressed
company shall be suspended. Under the same law, claim
“shall refer to all claims or demands of whatever nature or
character against the debtor or its property, whether for
money or otherwise, liquidated or unliquidated, fixed or
contingent, matured or unmatured, disputed or undisputed,
including, but not limited to: (1) all claims of the
government, whether national or local, including
taxes, tariffs and customs duties; and (2) claims against
directors and officers of the debtor arising from acts done in
the discharge of their functions falling within the scope of
their authority: Provided, that, this inclusion does not
prohibit the creditors or third parties from filing cases
against the directors and officers acting in their personal
capacities.”
B) The remedy of creditors of the distressed debtor is to
submit their claims to the rehabilitation court for
proper consideration so that they may participate in the
proceedings, keeping in mind the general policy of the law
“to ensure or maintain certainty and predictability in
commercial affairs, preserve and maximize the value of the
assets of these debtors, recognize creditor rights and respect
priority of claims, and ensure equitable treatment of
creditors who are similarly situated.” In other words, the
creditors must ventilate their claims before the

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 20/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

rehabilitation court, and any “[a]ttempts to seek legal or

other resource against the

622

622 SUPREME COURT REPORTS ANNOTATED

distressed corporation shall be sufficient to support a

finding of indirect contempt of court.” x x x
The insistence that: (a) Misajon, et al. only performed
such acts to toll the prescriptive period for the collection of
deficiency taxes; and (b) to cite them in indirect contempt
would unduly interfere with their function of collecting
taxes due to the government, cannot be given any credence.
BIR could have easily tolled the running of such
prescriptive period, and at the same time, perform their
functions as officers of the BIR, without defying the
Commencement Order and without violating the laudable
purpose of RA 10142 by simply ventilating their claim
before the Rehabilitation Court. After all, they were
adequately notified of the LCI’s corporate rehabilitation and
the issuance of the corresponding Commencement Order. It
was improper for Misajon, et al. to collect, or even attempt
to collect, deficiency taxes from LCI outside of the
rehabilitation proceedings concerning the latter, and in the
process, willfully disregard the Commencement Order
lawfully issued by the Rehabilitation Court. Hence, the
rehabilitation court correctly cited them for indirect
contempt. (Bureau of Internal Revenue v. Lepanto
Ceramics, Inc., G.R. No. 224764, 24 April 2017, 824 SCRA
125)

§ 12. “Claims” that are not suspended

The suspension of “all claims” as an incident to

corporate rehabilitation does NOT contemplate the
suspension of criminal charges filed against the corporate
officers of the distressed corporation (Panlilio v. Regional
Trial Court, Branch 51, City of Manila, G.R. No. 173846, 2
February 2011, 641 SCRA 438; Rosario v. Co, G.R. No.
133608, 26 August 2008, 563 SCRA 239). Criminal actions
against the individual officer of a corporation are not

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 21/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

subject to the Stay or Suspension Order in rehabilitation

proceedings (Sec. 18[g], FRIA).

623

VOL. 848, DECEMBER 13, 2017 623

A. BP Blg. 22 case is not a “claim”

The filing of a case for BP 22 is not a “claim” that can be

enjoined within the purview of PD 902-A on stay order.
True, although conviction of the accused for the alleged
crime could result in the restitution, reparation or
indemnification of the private offended party for the
damage or injury he sustained by reason of the felonious
act of the accused, nevertheless, prosecution for violation of
BP 22 is a criminal action, the purpose of which is to
punish the mere issuance of a bad check, rather than for its
nonpayment (Rosario v. Co, G.R. No. 133608, 26 August
2008, 563 SCRA 239).

§ 13. Stay order applies only to those who are in the

category of debtor and creditor

Suspension of all actions for claims against corporations

pertains to those who stand in the category of debtors and
creditors. Unit buyers in a condominium are not in the
same category.
Section 24 of the interim rules limits the coverage of the
Rules on rehabilitation and consequently the rule of
suspension of action to those who stand in the category or
debtors and creditors; the relationship between the
petitioner banks, as mortgagor of the ASB property, on one
hand, and respondents SLGT and Dylanco, as unit buyers,
on the other, cannot be that of a debtor-creditor as to bring
the case within the purview of the rules on corporate
recovery, let alone the Sobrejuanite case; then, too, the
vinculum that binds SLGT/Dylanco, as unit buyers and as
suitors before the HLURB, and ASB is far from being akin
to that of debtor-creditor; as it were, SLGT/Dylanco sued
ASB for having constituted, in breach of PD 957, a
mortgage on the condominium project without prior
HLURB approval and so much as notifying them of the

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 22/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

loan release for which reason they prayed for the delivery
of their units free from all liens and encum-

624

624 SUPREME COURT REPORTS ANNOTATED

brances; with the view we take of the case, the complaint of

individual respondents is not in the nature of “claims” that
should be covered by the suspensive effect of a
rehabilitation proceeding (Metropolitan Bank and Trust
Company, Inc. v. SLGT Holdings, Inc., G.R. Nos. 175181-
82, 14 September 2007, 533 SCRA 516).

§ 14. Rehabilitation will not deprive corporate

officers and directors of control of the corporation

There is nothing in the corporate rehabilitation that

would ipso facto deprive the Board of Directors and
corporate officers of a debtor corporation of control such
that it can no longer enforce its right to recover its property
from an errant lessee (Umale v. ASB Realty Corporation,
G.R. No. 181126, 15 June 2011, 652 SCRA 215).

§ 15. Effectivity and duration of suspension/stay

order

Unless lifted by the court, the Commencement Order

shall be effective for the duration of the rehabilitation
proceedings for as long as there is a substantial likelihood
that the debtor will be successfully rehabilitated (Sec. 21,
FRIA) unless (a) earlier lifted by the court, (b) the
rehabilitation plan is seasonably confirmed or approved, or
(c) the rehabilitation proceedings are ordered terminated
by the court pursuant to Section 73 of the F-Rules (Sec. 11,
Rule 2, F-Rules).

§ 16. Effect of stay order on the security of the

secured creditors

The issuance of the commencement order or

stay/suspension order shall not diminish or impair the
security of the secured creditors, except that the stay order

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 23/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

may suspend their rights to enforce their security (Sec. 60,

FRIA). The court, however, may allow the secured creditor
to enforce

625

VOL. 848, DECEMBER 13, 2017 625

his security or foreclose on the property of the debtor

constituting the security if said security or property is not
necessary for rehabilitation (id.).
By that statutory provision, it is clear that the approval
of the Rehabilitation Plan and the appointment of a
rehabilitation receiver merely suspend the actions for
claims against respondent corporations. Petitioner bank’s
preferred status over the unsecured creditors relative to
the mortgage liens is retained, but the enforcement of such
preference is suspended. The loan agreements between the
parties have not been set aside and petitioner bank may
still enforce its preference when the assets of ASB Group of
Companies will be liquidated. Considering that the
provisions of the loan agreements are merely suspended,
there is no impairment of contracts, specifically its lien in
the mortgaged properties (Metropolitan Bank & Trust
Company v. ASB Holdings, Inc., G.R. No. 166197, 27
February 2007, 517 SCRA 1).

§ 17. Stay order will not oust a court of its

jurisdiction over a case filed before it; the case
will only be suspended

The stay order simply suspends all actions for claims

against a corporation undergoing rehabilitation — it does
not work to oust a court of its jurisdiction over a case
properly filed before it (De Castro v. Liberty Broadcasting
Network, Inc., G.R. No. 165153, 25 August 2010, 629 SCRA
77).

§ 18. Verified notice of claim and the failure of the

creditor to file a notice of claim

Every creditor of the debtor or any interested party

whose claim is not yet listed in the schedule of debts and

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 24/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

liabilities shall file his verified notice of claim not later

than five (5) days before the first initial hearing date fixed
in the Commencement Order. If a creditor files a belated
claim, he

626

626 SUPREME COURT REPORTS ANNOTATED

shall not be entitled to participate in the proceedings but

shall be entitled to receive distributions arising therefrom
if recommended and approved by the rehabilitation
receiver, and approved by the court (Sec. 12, Rule 2, F-
Rules).
A creditor who failed to file its claim shall not be entitled
to participate in the rehabilitation proceedings, but shall be
entitled to receive distributions therefrom (Sec. 23, FRIA).

§ 19. Modification of suspension of payments

The court, on motion or motu proprio, may modify or

terminate, or set conditions, for the continuance of
suspension of payment, or relieve a claim from coverage, if
it is proven that a creditor does not have adequate
protection over the property securing its claim (Sec. 61[a],
FRIA) or that the value of the claim secured by the debtor’s
property (which is not necessary for rehabilitation) exceeds
the fair market value of the said property (Sec. 61[b],
FRIA).

§ 20. Initial hearing

The initial hearing shall be set at a date no later than

forty (40) days from the date of the filing of the petition (
Sec. 8[Q], Rule 1, F-Rules). At the initial hearing, the court
shall determine compliance with the jurisdictional
requirements i.e., filing of a publisher’s affidavit showing
that the publication requirements and a petitioner’s
affidavit showing that the service requirement for local
creditors and notification requirement for foreign creditors
had been complied with, as required in the commencement
order (Sec. 13, Rule 2, F-Rules)

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 25/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

Thereafter, the court shall determine which creditors

timely filed their claims and hear any objection to the
appointed rehabilitation receiver or to the rehabilitation
plan (Sec. 22, FRIA). A creditor who failed to file its claim
shall not

627

VOL. 848, DECEMBER 13, 2017 627

be entitled to participate in the rehabilitation proceedings,

but shall be entitled to receive distributions therefrom (Sec.
23, FRIA).

§ 21. Additional hearings

The court may hold additional hearings as may be

necessary to continue the initial hearing process but these
hearings must be concluded not later than ninety (90) days
from the first hearing date fixed in the Commencement
Order (Sec. 15, Rule 2, F-Rules).

§ 22. Action of the rehabilitation receiver

After the initial hearing, the rehabilitation receiver shall

submit to the court his report on whether or not to give due
course to the petition. The rehabilitation receiver may
likewise recommend the liquidation of the debtor (Sec. 24,
FRIA). The report shall be submitted within forty (40) days
from the termination of the initial hearing, with or without
the comments from the creditors (Sec. 16, Rule 2, F-Rules).
The rehabilitation receiver shall establish a preliminary
registry of claims (Sec. 44, FRIA) within twenty (20) days
from assumption (Sec. 44, Rule 2, F-Rules). Interested
parties may challenge or oppose any claim therein (Sec. 45,
FRIA). The confirmation of the rehabilitation plan shall
bind the debtor and persons who may be affected by it,
including the creditors, whether or not such persons have
participated in the proceedings or opposed the
Rehabilitation Plan or whether or not their claims have
been scheduled (Sec. 69[a], FRIA).

§ 23. Determination of claims

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 26/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

The rehabilitation receiver shall make the registry

available for public inspection providing the place/s and
date/s

628

628 SUPREME COURT REPORTS ANNOTATED

of inspection and publish the same in a newspaper of

general circulation in the Philippines once every week for
two (2) consecutive weeks. The period of inspection shall
not exceed fifteen (15) days from the last publication (Sec.
44, Rule 2, F-Rules).
Challenge to the claim/s must be made and submitted to
the court within thirty (30) days from the expiration of the
period to inspect. Upon the expiration of the thirty (30)-day
period, the rehabilitation receiver shall submit to the court
the registry of claims. The registry of claims shall include
the following lists of (1) claims that have not been subject
to challenge; (2) claims resolved by the rehabilitation
receiver after these have been challenged; and (3) disputed
but unresolved claims (Sec. 45, Rule 2, F-Rules).
The aggrieved party may seek the review of the decision
of the rehabilitation receiver on a claim by filing a motion
with the rehabilitation court within five (5) days from
receipt of the rehabilitation receiver’s assailed decision,
which shall be decided by the court at the soonest possible
time. (Sec. 46, Rule 2, F-Rules)

§ 24. Action of the court upon receipt of the

rehabilitation report

Within ten (10) days from receipt of the report the court
may give due course to the petition, dismiss the petition or
convert the proceedings into one for the liquidation of the
debtor (Sec. 17, Rule 2, F-Rules).
If the petition is given due course, the rehabilitation
plan must be submitted within a period of not more than
ninety (90) days from the date of the order giving due
course to the petition (Sec. 18, Rule 2, F-Rules).

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 27/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

629

VOL. 848, DECEMBER 13, 2017 629

§ 25. The Rehabilitation Receiver

A rehabilitation receiver must be a resident citizen,

knowledgeable of insolvency, possess good moral character
and have no conflict of interest (Sec. 29, FRIA). His role is
to preserve the value of the assets of the debtor and
implement the rehabilitation plan (Sec. 31, FRIA). He may
be removed for cause by the court, motu proprio or upon
motion of creditors holding 50% of the total liabilities of the
debtor (Sec. 32, FRIA).

A. Management of the debtor or appointment of a

Management Committee

Upon motion of interested party, the receiver may

manage the debtor or appoint a management committee
(MC) (Sec. 36, FRIA; Sec. 31, Rule 2, F-Rules).

B. Organization of a Creditors’ Committee

After the petition is given due course, a Creditors’

Committee may be organized to be represented by each
class of creditors such as secured creditors, unsecured
creditors, trade creditors and suppliers, and employees of
the debtor. It shall be the primary liaison between the
rehabilitation receiver and the creditors. The creditors’
committee cannot exercise or waive any right or give any
consent on behalf of any creditor unless specifically
authorized in writing by such creditor. The creditors’
committee may be authorized by the court or by the
rehabilitation receiver to perform such other tasks and
functions to facilitate the rehabilitation process (Secs. 39-
42, Rule 2, F-Rules).

§ 26. Immunity from suit

The rehabilitation receiver and all persons employed by

him shall not be subject to any action, claim or demand in

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 28/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

630

630 SUPREME COURT REPORTS ANNOTATED

connection with any act done or omitted to be done by them

in good faith in connection with the exercise of their powers
and functions or other actions duly approved by the court (
Sec. 41, FRIA).

§ 27. Post-Commencement Date Actions

The court may, upon the recommendation of the

rehabilitation receiver, authorize the sale of the debtor’s
assets if the assets are perishable, susceptible to
devaluation or are otherwise in jeopardy (Sec. 49, FRIA).
The rate and term of interest, if any, on secured and
unsecured claims shall be determined and provided for in
the rehabilitation plan (Sec. 54, FRIA; Sec. 53, Rule 2, F-
Rules).
The court may rescind or declare null and void (a) any
sale or disposal of debtor’s property which is not made in
the ordinary course of business or (b) any transaction of the
debtor occurring prior to the issuance of the
commencement order which was executed with intent to
defraud creditor/s or gives undue preference to any creditor
(Sec. 58, FRIA).
There shall be no diminution of security or lien; they are
merely suspended during the stay order (Sec. 60, FRIA).
The court, on motion or motu proprio, may terminate,
modify or set conditions for the continuance of suspension
of payment, or relieve a claim from the coverage thereof,
upon showing that: (a) a creditor does not have adequate
protection over the property securing its claim; or (b) the
value of a claim secured by a lien on property which is not
necessary for rehabilitation of the debtor exceeds the fair
market value of the property (Sec. 60, Rule 2, F-Rules).
By that statutory provision, it is clear that the approval
of the Rehabilitation Plan and the appointment of a
rehabilitation receiver merely suspend the actions for
claims against respondent corporations. Petitioner bank’s
preferred status over the unsecured creditors relative to
the mortgage liens is

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 29/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

631

VOL. 848, DECEMBER 13, 2017 631

retained, but the enforcement of such preference is

suspend-ded. The loan agreements between the parties
have not been set aside and petitioner bank may still
enforce its preference when the assets of ASB Group of
Companies will be liquidated. Considering that the
provisions of the loan agreements are merely suspended,
there is no impairment of contracts, specifically its lien in
the mortgaged properties (Metropolitan Bank & Trust
Company, Inc. v. ASB Holdings, Inc., G.R. No. 166197, 27
February 2007, 517 SCRA 1).

§ 28. Liability of Directors and Officers

Directors and officers of the debtor shall be liable up to

double the value of the property sold, embezzled or
otherwise disposed of if they knowingly dispose of debtor’s
property other than in the ordinary course of business,
approve fraudulent or grossly disadvantageous
transactions, or conceal, embezzle or misappropriate
debtor’s property (Sec. 10, FRIA).

§ 29. The rehabilitation plan and the “cram-down”

power

The FRIA provides for the minimum contents of a

rehabilitation plan (Sec. 62, FRIA). As a rule, the
rehabilitation plan is submitted upon filing of the petition
for CSR. The rehabilitation receiver may propose changes
thereto, considering the views and comments of the debtor
and creditors (Sec. 63, FRIA). The rehabilitation plan is
approved by a majority of each class of creditors, the
majority being based on the value of claims held by the
creditors in each class. If no such majority is obtained, the
rehabilitation plan is considered rejected (Sec. 64). The
court, however, exercise its cram-down power and
approve the rehabilitation plan over the objection of any
class of creditors under the following circumstances: (a) the
rehabilitation receiver recommended the confirmation of
the rehabilitation plan; (b) the rehabilitation plan

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 30/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

632

632 SUPREME COURT REPORTS ANNOTATED

would give the objecting class of creditors greater

compensation (computed at net present value) than at
liquidation; or (c) the shareholders of debtor loses their
controlling interest in the debtor as a result of the
rehabilitation plan. A breach of the rehabilitation plan may
result in the liquidation of the debtor (Sec. 64, second par.,
FRIA).
The provisions of other laws to the contrary
notwithstanding, the court shall have the power to approve
or implement the Rehabilitation Plan despite the lack of
approval, or objection from the owners, partners or
stockholders of the insolvent debtor (Sec. 68, last par.,
FRIA).
The “cram-down” power of the Rehabilitation Court has
long been established and even codified under Section 23,
Rule 4 of the Interim Rules (Victorio-Aquino v. Pacific
Plans, Inc., G.R. No. 193108, 10 December 2014, 744 SCRA
480).
It is undeniable that there is a need to move to a regime
of modern restructuring, cram-down and court supervision
in the matter of corporate rehabilitation in order to address
the greater interest of the public (Victorio-Aquino v. Pacific
Plans, Inc., G.R. No. 193108, 10 December 2014, 744 SCRA
480).
The rehabilitation plan is an indispensable requirement
in corporate rehabilitation proceedings (Siochi Fishery
Enterprises, Inc. v. Bank of the Philippine Islands, G.R. No.
193872, 19 October 2011, 659 SCRA 817).
Court may approve a rehabilitation plan even over the
opposition of creditors holding a majority of the total
liabilities of the debtor (Pacific Wide Realty and
Development Corporation v. Puerto Azul Land, Inc., G.R.
No. 178768, 25 November 2009, 605 SCRA 503).

A. Rehabilitation to be decided in one year;

Supreme Court may extend period

633

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 31/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

VOL. 848, DECEMBER 13, 2017 633

The court shall have a maximum period of one (1) year

from the date of filing of the petition to confirm a
rehabilitation plan. If no rehabilitation plan is confirmed
within the said period, the proceedings may upon motion or
motu propio, be converted into one for the liquidation of the
debtor (Sec. 72, FRIA).
The court shall decide the petition within one (1) year
from the date of filing of the petition, unless the court, for
good cause shown, is able to secure an extension of the
period from the Supreme Court (Lorenzana v. Austria, A.M.
No. RTJ-0-2200, 2 April 2014, 720 SCRA 319).

B. Filing of objections to rehabilitation plan (Sec.

64, Rule 2, F-Rules)
A creditor may file a verified opposition containing its
written objections to the Rehabilitation Plan accompanied
by affidavits and supporting documents within twenty (20)
days from receipt of notice from the court that the
Rehabilitation Plan has been submitted for confirmation.
Objections to a Rehabilitation Plan shall be limited to the
following:
(A) the creditors’ support was induced by fraud;
(B) the documents or data relied upon in the
Rehabilitation Plan are materially false or
misleading; or
(C) the Rehabilitation Plan is in fact not supported
by the voting creditors.
The court shall hear and decide on the objections which
shall not be later than ten (10) days from expiration of the
filing of the objections. If the court finds merit in the
objection, it shall order the rehabilitation receiver or other
party to cure the defect, whenever feasible. If the court
determines that the debtor acted in bad faith, or that it is
not feasible to cure the defect, the court shall convert the
proceedings into one for the liquidation of the debtor (Sec.
65, Rule 2, F-Rules).

634

634 SUPREME COURT REPORTS ANNOTATED

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 32/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR

C. Confirmation of rehabilitation plan

The provisions of other laws to the contrary

notwithstanding, the court shall have the power to approve
or implement the Rehabilitation Plan despite the lack of
approval, or objection from the owners, partners or
stockholders of the insolvent debtor: provided, that the
terms thereof are necessary to restore the financial
wellbeing and viability of the insolvent debtor (Sec. 66,
Rule 2, F-Rules).
The rehabilitation plan, once approved, is binding upon
the debtor and all persons who may be effected by it,
including the creditors, whether such persons have or have
not participated in the proceedings or have opposed the
plan or whether their claims have or have not been
scheduled (Veterans Philippine Scout Security Agency, Inc.
v. First Dominion Prime Holdings, Inc., G.R. No. 190907,
23 August 2012, 679 SCRA 168).

D. Review of decision or order on

rehabilitation plan

An order approving or disapproving a rehabilitation plan

can only be reviewed through a petition for certiorari to the
Court of Appeals under Rule 65 of the Rules of Court
within fifteen (15) days from notice of the decision or order
(Sec. 2, Rule 6, F-Rules).
Contra: As pointed out earlier, under Section 4, Rule 65
of the Rules of Court, the period to file a petition is sixty
(60) days from notice of judgment or from receipt of the
ruling on the motion for reconsideration.

§ 30. Pre-Negotiated Rehabilitation (PNR)

An insolvent debtor may choose to initially negotiate a

rehabilitation plan with its creditors out-of-court. If
creditors holding two-thirds of the total liabilities of the
debtor, includ-

635

VOL. 848, DECEMBER 13, 2017 635

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 33/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR

ing those holding 50% each of the secured and unsecured

claims, approve or endorse the rehabilitation plan, the
debtor may file a verified petition with the court for the
approval of such pre-negotiated rehabilitation plan (PNR) (
Sec. 76, FRIA).
If the court determines that the petition is sufficient in
form and substance within five (5) days from the filing of
the petition (Sec. 2, Rule 3, F-Rules), it shall issue an order
allowing any creditor to oppose the petition and a
suspension or stay order (similar to the one discussed
under CSR) (Sec. 77). If there are no objections, the court
will approve the rehabilitation plan (Sec. 78, FRIA). If
there are objections, the court will hear them (Sec. 80). The
court has a maximum of 120 days from the time of the
filing of petition to approve the rehabilitation plan. The
rehabilitation plan shall be deemed approved if the court
fails to act within the 120-day period (Sec. 81, FRIA).

A. Effectivity and duration of stay or

suspension order

It shall retroact to the date of the filing of the petition

and shall be effective for one hundred twenty (120) days
from the filing of the petition unless earlier lifted by the
court on account of (a) the approval of the Pre-Negotiated
Rehabilitation Plan, or (b) the termination of the
rehabilitation proceedings (Sec. 3, Rule 3, F-Rules).

B. Limited grounds to object the petition for

rehabilitation (Sec. 5, Rule 3, F-Rules)

Any creditor or other interested party can only object on

the following limited grounds:
(a) the allegations in the petition or the Pre-
Negotiated Rehabilitation Plan, or the
attachments thereto, are materially false or
misleading;

636

636 SUPREME COURT REPORTS ANNOTATED

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 34/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

FINANCIALLY DISTRESSEDENTERPRISES AND

INDIVIDUALS)The “Financial Rehabilitation and
Insolvency Act (FRIA) of 2010” and The Financial
Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

(b) the majority of any class of creditors do not in

fact support the Pre-Negotiated Rehabilitation
Plan;
(c) the support of the creditors or any of them was
induced by fraud; or
(d) the Pre-Negotiated Rehabilitation Plan fails to
accurately account for a claim against the debtor
and the claim is not categorically declared as a
contested claim.
The court shall hear and decide objections not earlier
than twenty (20) days nor later than thirty (30) days from
the date of the second publication of the Order. If the court
finds the objection meritorious, it shall direct the debtor,
when feasible, to cure the defect within fifteen (15) days
from receipt of the order. If the court determines that the
debtor or creditors supporting the Pre-Negotiated
Rehabilitation Plan acted in bad faith, or that the objection
is non-curable, the court may convert the rehabilitation
proceedings into liquidation. A finding by the court that the
objection has no substantial merit or that the same has
been cured shall be deemed an approval of the Pre-
Negotiated Rehabilitation Plan (Sec. 7, Rule 3, F-Rules).

§ 31. Out-of-court or Informal Restructuring

Agreements or Rehabilitation Plans (OCRA)

The FRIA sets the minimum requirements for out-of-

court or informal restructuring agreements or
rehabilitation plans such as debtor’s consent thereto and
approval of creditors holding 67% of the secured claims,
75% of the unsecured claims and 85% of the total
obligations, secured or unsecured (Sec. 84, FRIA). There
shall be a standstill period pending the negotiation and
finalization of the out-of-court or informal restructuring
agreements or rehabilitation plans which shall not exceed
120 days. The standstill period shall be approved

637

VOL. 848, DECEMBER 13, 2017 637

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND
INDIVIDUALS)The “Financial Rehabilitation and

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 35/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

Insolvency Act (FRIA) of 2010” and The Financial

Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

by creditors holding 50% of the total liabilities of the debtor

(Sec. 85, FRIA).

A. Effective and expiration of the standstill period

The standstill period shall be effective after publication

of the notice once a week for two (2) consecutive weeks in a
newspaper of general circulation in the Philippines (Sec.
2[7], Rule 4, F-Rules).
The standstill period shall expire upon (1) the lapse of
120 days from the effectivity of the standstill agreement,
(2) the effectivity of the OCRA, or (3) the termination of the
negotiations for the OCRA as declared by creditors
representing more than fifty percent (50%) of the total
liabilities of the debtor, whichever comes first (Sec. 3, Rule
4, F-Rules).

B. Binding effect of the OCRA

If duly approved, the OCRA shall be binding on the

debtor and all affected persons, including the creditors,
whether or not they will participate in the negotiations (
Sec. 2, Rule 4, F-Rules).

C. Stay of implementation of OCRA

Any court action or other proceedings arising from or

relating to, the out-of-court or informal
restructuring/workout or rehabilitation plan shall not stay
its implementation, unless the relevant party is able to
secure a temporary restraining order or injunctive relief
from the Court of Appeals (Sec. 88, FRIA) via an original
action under Rule 65 of the Rules of Court (Sec. 7, Rule 4,
F-Rules).

D. Court assistance

An insolvent debtor and/or creditor may file a petition

with the Regional Trial Court where the insolvent debtor

638

638 SUPREME COURT REPORTS ANNOTATED

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 36/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

INDIVIDUALS)The “Financial Rehabilitation and

Insolvency Act (FRIA) of 2010” and The Financial
Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

resides or where the principal business is located for court

assistance to execute or implement a standstill agreement
or an OCRA (Secs. 8 & 9, Rule 4, F-Rules). The court may
issue a writ of execution to enforce its terms or issue other
forms of additional assistance as maybe necessary to
execute or implement the standstill agreement or OCRA,
including the award of damages properly pleaded and
proved, and to protect the interests of the creditors, the
debtor, and other interested parties (Sec. 10, Rule 4, F-
Rules).
The judgment of the court shall be final and
immediately executory (Sec. 16, Rule 4, F-Rules). However,
any judgment of the court may be elevated to the Court of
Appeals under Rule 65 of the Rules of Court (id.).

E. Annulment of OCRA or standstill agreement

The debtor or creditor may file a petition to annul (1) the

standstill agreement or (2) the OCRA based on the ground
of noncompliance with the requirements for a standstill
agreement or an OCRA. Vitiation of consent due to fraud,
intimidation, or violence may be raised as a ground to
annul the standstill agreement or the OCRA if committed
against such number of creditors required for the approval
of the standstill agreement or OCRA, as the case may be (
Sec. 10, Rule 4, F-Rules).
The respondent shall file a verified comment or
opposition within five (5) days from receipt of summons (
Sec. 13, Rule 4, F-Rules).
The court will determine the existence of a genuine
issue of material facts or whether the petition will be
granted. If no comment is filed, a clarificatory hearing may
be conducted. Upon a determination of genuine issue of
material facts, the court shall conduct a summary hearing
not later than 20-days from the filing of the petition. A
judgment shall

639

VOL. 848, DECEMBER 13, 2017 639

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND
INDIVIDUALS)The “Financial Rehabilitation and

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 37/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

Insolvency Act (FRIA) of 2010” and The Financial

Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

be rendered not later than 60-days from filing of the

petition (Secs. 14 & 15, Rule 4, F-Rules).
The judgment shall be final within 10-days from receipt
of the decision and is immediately executory. However, any
judgment of the court may be elevated to the Court of
Appeals under Rule 65 of the Rules of Court (Sec. 16, Rule
4, F-Rules).

§ 32. Liquidation in Insolvency

A. Objective of insolvency proceedings

The objective in insolvency proceedings is “to effect an

equitable distribution of the bankrupt’s properties among
his creditors and to benefit the debtor by discharging him
from his liabilities and enabling him to start afresh with
the property set apart for him as exempt (Metropolitan
Bank and Trust Company v. S.F. Naguiat Enterprises, Inc.,
G.R. No. 178407, 18 March 2015, 753 SCRA 474).

B. Nature and Procedure

There are two kinds of liquidation proceedings —

voluntary and involuntary. In voluntary liquidation, the
insolvent debtor may directly file a verified petition for
liquidation with the court attaching a schedule of its debts,
inventory of assets and names of nominees for liquidator.
The insolvent debtor may also convert proceedings for CSR
or PNR into liquidation by filing a motion with the court (
Sec. 90, FRIA). In involuntary liquidation, three or more
creditors with claims of at least P1 million or holding 25%
of the total paid-up capital or partners’ contributions of the
debtor may directly file a verified petition for the
liquidation of the debtor. Such creditors may also convert
proceedings for CSR or PNR into liquidation by filing a
motion with the court (Sec. 91, FRIA).
If the court finds the petition sufficient in form and
substance, it shall issue a liquidation order declaring the
debtor

640

640 SUPREME COURT REPORTS ANNOTATED

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 38/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

INDIVIDUALS)The “Financial Rehabilitation and

Insolvency Act (FRIA) of 2010” and The Financial
Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

insolvent which shall have the following effects: the debtor

shall be deemed dissolved, and its corporate or juridical
existence terminated, legal title to the assets of the debtor
shall be deemed vested in the liquidator, and all contracts
of the debtor are deemed terminated, no foreclosure
proceedings shall be allowed for a period of one hundred
eighty (180) days (Sec. 113, FRIA). The liquidation order
shall not affect the rights of the secured creditors to enforce
his security, although he may waive his security (Sec. 114,
FRIA).
The Liquidator is elected by creditors who filed their
claims within the period set by the court. A secured
creditor cannot vote unless he waives his security (Sec. 115,
FRIA). The liquidator has the power to recover all the
assets belonging to the debtor, take possession thereof, and
sell the same (Sec. 119, FRIA). The liquidator also has the
duty to prepare the registry of claims which, after
entertaining any opposition or challenge, shall be
submitted to the court for final approval (Sec. 123, FRIA).
The liquidator may sell, but only at public auction,
unencumbered assets of the debtor and convert them to
money. Private sale may be allowed if a) the goods are
perishable, quickly deteriorate or disproportionately
expensive to keep or maintain, or b) it is to the best interest
of the debtors and creditors (Sec. 131, FRIA).
Within three (3) months from assumption of office, the
liquidator shall submit a liquidation plan which shall
govern the manner of disposition of the assets of the debtor
(Sec. 129, FRIA). In the disposition of the assets, the Civil
Code provisions on concurrence and preference of credits
shall be observed (Sec. 133, FRIA).

§ 33. Cross-Border Insolvency

The Court may issue orders, in connection with an

insolvency or rehabilitation proceedings taking place in a
foreign

641

VOL. 848, DECEMBER 13, 2017 641

REPUBLIC ACT NO. 10142(AN ACT PROVIDING FOR
THE REHABILITATIONOR LIQUIDATION OF
FINANCIALLY DISTRESSEDENTERPRISES AND
INDIVIDUALS)The “Financial Rehabilitation and

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 39/40
9/20/24, 1:55 PM SUPREME COURT REPORTS ANNOTATED 848

Insolvency Act (FRIA) of 2010” and The Financial

Rehabilitation Rules of Procedure(AM No. 12-12-11-SC)

jurisdiction (Sec. 140, FRIA), suspending any actions to

enforce claims against the entity or otherwise seize or
foreclose on property of the foreign entity located in the
Philippines, requiring the surrender of property of the
foreign entity to the foreign representative, or providing
other necessary relief (Sec. 141, FRIA).

A. Scope of application

This Rule applies where:

(a) assistance is sought in a Philippine court by a foreign
court or a foreign representative in connection with a
foreign proceeding;
(b) assistance is sought in a foreign State in connection
with a proceeding governed by the FRIA and the F-
Rules; or
(c) a foreign proceeding and a proceeding governed by
the FRIA and the F-Rules are concurrently taking
place; or
(d) Creditors in a foreign State have an interest in
requesting the commencement of, or participating in,
a proceeding under Rules 2, 3, and 4 of the F-Rules.
The mere filing of a petition does not subject the foreign
representative or the foreign assets and affairs of the
debtor to the jurisdiction of the local Courts for any
purpose other than the petition for recognition and
resulting related proceedings (Sec. 1, Rule 5, F-Rules).

——o0o——

https://escra.mycentralapp.com/sfsreader/session/000001920d63dda173564e22000d00d40059004a/t/?o=False 40/40

Epstein Documents (Jan. 3)
81% (43)
Epstein Documents (Jan. 3)
943 pages
FRIA
No ratings yet
FRIA
61 pages
Financial Rehabilitation and Insolvency Act
No ratings yet
Financial Rehabilitation and Insolvency Act
4 pages
SPECPRO-Unionbank V Santibañez
No ratings yet
SPECPRO-Unionbank V Santibañez
3 pages
Aznar vs. Christensen-Garcia, G.R. No. L-16749, January 31, 1963
No ratings yet
Aznar vs. Christensen-Garcia, G.R. No. L-16749, January 31, 1963
4 pages
RFBT 16 - Financial Rehabilitation and Insolvency Act
No ratings yet
RFBT 16 - Financial Rehabilitation and Insolvency Act
8 pages
G.R. No. 256612
No ratings yet
G.R. No. 256612
3 pages
Notes in Taxation Law (2014) : Jason R. Barlis
No ratings yet
Notes in Taxation Law (2014) : Jason R. Barlis
12 pages
Ratsasan - Wikipedia
0% (1)
Ratsasan - Wikipedia
9 pages
Macariola vs. Asuncion 114 SCRA 77, A.M. No. 113-J May 31, 1982
No ratings yet
Macariola vs. Asuncion 114 SCRA 77, A.M. No. 113-J May 31, 1982
3 pages
Chapter One: Nutrition Screening: Sample Malnutrition Screening Tools
100% (1)
Chapter One: Nutrition Screening: Sample Malnutrition Screening Tools
4 pages
Module 1 Constitutional Provisions Related To Taxation
No ratings yet
Module 1 Constitutional Provisions Related To Taxation
17 pages
48 Philippine American Life Insurance Co. v. Pineda
No ratings yet
48 Philippine American Life Insurance Co. v. Pineda
3 pages
Feist Publications v. Rural Tel. Service
No ratings yet
Feist Publications v. Rural Tel. Service
1 page
Paajoy Succession
No ratings yet
Paajoy Succession
206 pages
G.R. No. 201074. October 19, 2016 (Case Brief - Digest)
No ratings yet
G.R. No. 201074. October 19, 2016 (Case Brief - Digest)
2 pages
Final Notes in Commercial Law
No ratings yet
Final Notes in Commercial Law
89 pages
Outline FOR Suspension OF Payments, Corporate Rehabilitation AND Insolvency
No ratings yet
Outline FOR Suspension OF Payments, Corporate Rehabilitation AND Insolvency
20 pages
Topical Outline Gen - Banking Law Absin Escabarte
No ratings yet
Topical Outline Gen - Banking Law Absin Escabarte
28 pages
05 Guaranty Transcrbed Cases
No ratings yet
05 Guaranty Transcrbed Cases
15 pages
07 - Handout - 1 (5) Business LAw
No ratings yet
07 - Handout - 1 (5) Business LAw
15 pages
Checkpoint Exam For Jss 2, Term 2, Original
No ratings yet
Checkpoint Exam For Jss 2, Term 2, Original
8 pages
ESCHEAT
No ratings yet
ESCHEAT
15 pages
CIR v. Commonwealth Management & Services Corporation
No ratings yet
CIR v. Commonwealth Management & Services Corporation
9 pages
Mercantile Law Compress 1
No ratings yet
Mercantile Law Compress 1
103 pages
Quiz No. 15: No It Depends None of The Above Correct Answer
No ratings yet
Quiz No. 15: No It Depends None of The Above Correct Answer
11 pages
Fabm2 - Q2 - M8
100% (1)
Fabm2 - Q2 - M8
12 pages
Sucession Reviewer
No ratings yet
Sucession Reviewer
9 pages
2020-07-31 Newsweek International
No ratings yet
2020-07-31 Newsweek International
54 pages
Republic Planters Bank v. Sarmiento
No ratings yet
Republic Planters Bank v. Sarmiento
7 pages
Bonilla vs. Barcena (1976)
No ratings yet
Bonilla vs. Barcena (1976)
1 page
Republic Act No. 7353
No ratings yet
Republic Act No. 7353
12 pages
State Investment House V Citibank
No ratings yet
State Investment House V Citibank
2 pages
CredTrans Chart
No ratings yet
CredTrans Chart
2 pages
Case Law: Spec Pro Midterms Reviewer (Atty. Chua)
No ratings yet
Case Law: Spec Pro Midterms Reviewer (Atty. Chua)
8 pages
Escueta - Modes of Discovery
No ratings yet
Escueta - Modes of Discovery
3 pages
Special Procedure Notes
No ratings yet
Special Procedure Notes
4 pages
Pre Week Notes Points To Ponder in Insurance Law by Deputy Commissioner Erickson Balmes
No ratings yet
Pre Week Notes Points To Ponder in Insurance Law by Deputy Commissioner Erickson Balmes
5 pages
Republic vs. Orbecido III
No ratings yet
Republic vs. Orbecido III
6 pages
Vibhakti (Declension) Comparison
No ratings yet
Vibhakti (Declension) Comparison
9 pages
Schools, and Public Charitable Institutions or Centers Same Is Located
No ratings yet
Schools, and Public Charitable Institutions or Centers Same Is Located
1 page
Iii. Prescription A. Types of Prescription 1. Acquisitive
No ratings yet
Iii. Prescription A. Types of Prescription 1. Acquisitive
5 pages
List of Cases For SUCCESSION
No ratings yet
List of Cases For SUCCESSION
5 pages
BPI Vs CA Case Digest
No ratings yet
BPI Vs CA Case Digest
1 page
Rule 96 Sections 5-8
No ratings yet
Rule 96 Sections 5-8
7 pages
Redistributed Assigned Labor I Cases
No ratings yet
Redistributed Assigned Labor I Cases
7 pages
Avelino V Cuenco
No ratings yet
Avelino V Cuenco
2 pages
(Law 4) Midterm Reviewer 2
No ratings yet
(Law 4) Midterm Reviewer 2
11 pages
Excess of Succession Notes
No ratings yet
Excess of Succession Notes
5 pages
Standard Oil Company Vs Lopez
No ratings yet
Standard Oil Company Vs Lopez
2 pages
Ligon Vs RTC Case Digest
No ratings yet
Ligon Vs RTC Case Digest
1 page
Topacio Vs Banco Filipino Savings
No ratings yet
Topacio Vs Banco Filipino Savings
2 pages
Malana vs. Tappa
No ratings yet
Malana vs. Tappa
6 pages
Admin Law Reviewer Part1 PDF
No ratings yet
Admin Law Reviewer Part1 PDF
76 pages
Title Iii Estate and Donor'S Taxes Chapter I - Estate Tax
No ratings yet
Title Iii Estate and Donor'S Taxes Chapter I - Estate Tax
9 pages
Swedish Match Philippines, Inc. vs. Treasurer of The City of Manila
No ratings yet
Swedish Match Philippines, Inc. vs. Treasurer of The City of Manila
6 pages
Remo Jr. vs. Intermediate Appellate Court
No ratings yet
Remo Jr. vs. Intermediate Appellate Court
9 pages
Conflicts - Succession
No ratings yet
Conflicts - Succession
14 pages
Atty. Cabaniero Tax Questions
No ratings yet
Atty. Cabaniero Tax Questions
26 pages
Corporate Code of The Philippines
No ratings yet
Corporate Code of The Philippines
11 pages
Puyat v. Zabarte
No ratings yet
Puyat v. Zabarte
3 pages
Andaya v. Rural Bank of Cabadbaran
No ratings yet
Andaya v. Rural Bank of Cabadbaran
8 pages
Banking Laws
No ratings yet
Banking Laws
90 pages
04 - Republic Vs Rambuyong
No ratings yet
04 - Republic Vs Rambuyong
2 pages
Acknowledgment For and in Behalf of A Corporation
No ratings yet
Acknowledgment For and in Behalf of A Corporation
1 page
Credit Transactions Reviewer
No ratings yet
Credit Transactions Reviewer
7 pages
US vs. Blanco
No ratings yet
US vs. Blanco
4 pages
Financial Statement Analysis: K.R. Subramanyam
No ratings yet
Financial Statement Analysis: K.R. Subramanyam
45 pages
IADC Associate Web
No ratings yet
IADC Associate Web
8 pages
Docket 17710
No ratings yet
Docket 17710
1,634 pages
UUK Transformation and Efficiency Towards A New Era of Collaboration 2025 1
No ratings yet
UUK Transformation and Efficiency Towards A New Era of Collaboration 2025 1
60 pages
HRM Case Study Presentation
0% (2)
HRM Case Study Presentation
14 pages
Crisis
No ratings yet
Crisis
31 pages
Good Will Hunting Subtitle
No ratings yet
Good Will Hunting Subtitle
277 pages
Talent Guide To Virtual Networking 3
100% (1)
Talent Guide To Virtual Networking 3
15 pages
Unit 9 - Revision
No ratings yet
Unit 9 - Revision
13 pages
Batas Reptlblika: (Republic Act)
No ratings yet
Batas Reptlblika: (Republic Act)
9 pages
Repaso Examen Final
No ratings yet
Repaso Examen Final
3 pages
Bangladesh Studies Essay
No ratings yet
Bangladesh Studies Essay
2 pages
Levy v. Zimmerman
No ratings yet
Levy v. Zimmerman
50 pages
Definitions of Sustainability
No ratings yet
Definitions of Sustainability
2 pages
SP Online202404251332 Cob 85352139145
No ratings yet
SP Online202404251332 Cob 85352139145
2 pages
Participatory Study On Oil Spillage Disaster in The Sundarbans: Impact On Biodiversity and Peoples Livelihood
No ratings yet
Participatory Study On Oil Spillage Disaster in The Sundarbans: Impact On Biodiversity and Peoples Livelihood
44 pages
61-2023 Defendants-Takedown-Bronx-Shootings-Alleged-Gang-Members
No ratings yet
61-2023 Defendants-Takedown-Bronx-Shootings-Alleged-Gang-Members
4 pages
Philippine Airlines, Inc. vs. NLRC
No ratings yet
Philippine Airlines, Inc. vs. NLRC
11 pages
Baho Commerce Form Four First Term Examinations 2024
No ratings yet
Baho Commerce Form Four First Term Examinations 2024
3 pages
Auction Notice 1676978283
No ratings yet
Auction Notice 1676978283
5 pages
Kerns, Matthew - Resume
No ratings yet
Kerns, Matthew - Resume
1 page
Mark The Letter A, B, C, or D On Your Answer Sheet To Indicate The Correct Answer To Each of The Following Questions
No ratings yet
Mark The Letter A, B, C, or D On Your Answer Sheet To Indicate The Correct Answer To Each of The Following Questions
2 pages
He Property of Being Perpendicular Is Shown
No ratings yet
He Property of Being Perpendicular Is Shown
2 pages

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.