C the standstill period does not exceed 120 days from

  • No School
  • AA 1
  • 27

This preview shows page 19 - 21 out of 27 pages.

c. The standstill period does not exceed 120 days from the date of effectivity. 2. The out-of-court Restructuring Agreement that meets the minimum vote requirement shall result in a cram down, as it bind not only the insolvent debtor but also persons who may be affected by it, including the creditors, whether or not such persons have participated in the proceedings or opposed the Out-of-court Restructuring Agreement or whether or not their claims have been scheduled, provided, that: a. The notice of the Out-of-court Restructuring Agreement shall be published once a week for at least three consecutive weeks in a newspaper of general circulation in the Philippines. b. The Out-of-court Restructuring Agreement shall take effect upon the lapse of 15 days from the date of the last publication of the notice. 3. Any court action or other proceedings arising from, or relating to, the Out-of- court Restructuring Agreement that meets the minimum vote requirement 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. 4. In Out-of-court Rehabilitation, no petitions are filed with the court. However, the insolvent debtor or any of its creditors may seek court assistance for the
Image of page 19
20 | P a g e F R I A n o t e s C r e d i t T r a n s a c t i o n s 2 n d Y r - L L B execution or implementation of the Out-of-court Restructuring Agreement that meets the minimum vote requirement. Chapter 5. Liquidation A. General Concepts - Article 2238, NCC - Article 2239, NCC - Article 2240, NCC - RA 10142, Sec. 2 - RA 10142, Sec. 4.. (u) Liquidation in insolvency generally connotes a winding up; the settling of debtors with their creditors so that the debtor's assets may be distributed to those entitled to receive them. It is the process of reducing the debtor's assets to cash, discharging its liabilities, and dividing the surplus or re-allocating the loss. The concept of liquidation is, therefore, diametrically opposed to the concept of rehabilitation, and both cannot be undertaken at the same time. Although the FRIA fails to define liquidation, a definition may be derived from Section 119 on the powers, duties and responsibilities of the Liquidator and Section 131 o the sale of assets in liquidation. Thus, liquidation is a judicial insolvency proceeding by which the assets of an insolvent debtor are recovered and their value preserved and maximized for the purpose of converting the same into money, and discharging, to the extent possible, all the claims against the insolvent debtor. Liquidation, being an insolvency proceeding, is a proceeding in rem and is binding against the whole world. All interested persons whether known to the parties or not, and all persons that have an interest in the subject matter involved, whether or not they are given notice, are equally bound.
Image of page 20
Image of page 21

You've reached the end of your free preview.

Want to read all 27 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes