"The 'credit' of an individual means his ability to borrow money by virtue of the confidence or trust reposed by a lender that he will pay what he may promise."
Justice George A. Malcolm, People v. Concepcion, 44 Phil. 126 (1922).

11.08.2011

Insolvency: Rehabilitation

A. General Concepts
R.A. No. 10142, Sec. 2
B. Court-Supervised Rehabilitation
1.  Voluntary Proceedings
Sec. 12
2.  Involuntary Proceedings
Sec. 13, Sec. 14
3.  Provisions Common to Voluntary and Involuntary Rehabilitation Proceedings
a.  Commencement Order
Sec. 15 to 17, Sec. 19, Sec. 21
            b.  Stay or Suspension Order
                        Sec. 16, Sec. 20
1) General Concepts
Rizal Commercial Banking Corporation v. Intermediate Appellate Court, G.R. No. 74851, December 9, 1999, 320 SCRA 279.
Sobrejuanite v. ASB Development Corporation, G.R. No. 165675, September 30, 2005, 471 SCRA 763.
2) Exceptions to Stay or Suspension Order
Sec. 18, Sec. 16
Metropolitan Waterworks & Sewerage System v. Daway and Maynilad Water Services, Inc., G.R. No. 160732, June 21, 2004, 432 SCRA 559.
Panlilio, et al. v. Regional Trial Court, Branch 51, City of Manila, G.R. No. 173846, February 2, 2011, 641 SCRA 438.
c.  Subsequent Actions
Sec. 22, Sec. 24 to 27
d.  Rehabilitation Receiver
1) General Concepts
Sec. 28 to 30, Sec. 32 to 35, Sec. 40
2) Powers, Duties and Responsibilities
Sec. 47, Sec. 24, Sec. 31, Sec. 39, Sec. 41
e.  Creditors’ Committees
Sec. 42, Sec. 43, Sec. 8, Sec. 9
f.  Management Committee
Sec. 47, Sec. 36 to 38
g.  Claims
Sec. 4(c) 
1) Determination of Claims
Sec. 16, Sec. 44 to 46
2) Treatment of Claims
a) Secured Creditor Claims
Sec. 60, Sec. 61
b) Employee Claims
Sec. 56, Sec. 16
c) Excluded Claims
Sec. 23
h.  Treatment of Assets
Sec. 47
1)  Unencumbered Assets
Sec. 48, Sec. 49, Sec. 52
2)  Encumbered Assets
Sec. 17, Sec. 50, Sec. 51, Sec. 53
i.  Treatment of Contracts
1)  Confirmation or Termination of Contracts
Sec. 57, Sec. 16
2)  Avoidance Proceedings
Sec. 58, Sec. 59
j. Rehabilitation Plan
1) General Concepts
Sec. 62, Sec. 54, Sec. 55
2) Cram Down Effect
Sec. 63 to 73
Bank of the Philippine Islands v. Securities & Exchange Commission, et al., G.R. No. 164641, December 20, 2007, 541 SCRA 294.
k.  Termination of Proceedings
Sec. 74, Sec. 75
l.  Conversion to Liquidation Proceedings
Sec. 92
C.  Pre-negotiated Rehabilitation
Sec. 76 to 82, Sec. 92
D.  Out-of-Court Rehabilitation
Sec. 83, Sec. 84.
1. General Concepts
2.  Benefits of Out-of-Court Rehabilitation
Sec. 85 to 89 

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