Giving Due Course to or Dismissal of Petition or Conversion of Proceedings

Giving due course to or dismissal of petition or

This preview shows page 11 - 13 out of 32 pages.

SECTION 25. Giving Due Course to or Dismissal of Petition, or Conversion of Proceedings. — Within ten (10) days from receipt of the report of the rehabilitation receiver mentioned in Section 24 hereof, the court may : 1) give due course to the petition upon a finding that: a) the debtor is insolvent ; and b) there is a substantial likelihood for the debtor to be successfully rehabilitated; 2) dismiss the petition upon a finding that: a) debtor is not insolvent ; b) the petition is a sham filing intended only to delay the enforcement of the rights of the creditor/s or of any group of creditors; c) the petition, the Rehabilitation Plan and the attachments thereto contain any materially false or misleading statements ; or d) the debtor has committed acts of misrepresentation or in fraud of its creditor/s or a group of creditors; 3) convert the proceedings into one for the liquidation of the debtor upon a finding that: a) the debtor is insolvent ; and b) there is no substantial likelihood for the debtor to be successfully rehabilitated as determined in accordance with the rules to be promulgated by the Supreme Court SECTION 26. Petition Given Due Course. — If the petition is given due course, the court shall direct the rehabilitation receiver to review, revise and/or recommend action on the Rehabilitation Plan and submit the same or a new one to the court within a period of not more than ninety (90) days. The court may refer any dispute relating to the Rehabilitation Plan or the rehabilitation proceedings pending before it to arbitration or other modes of dispute resolution, as provided for under Republic Act No. 9285, or the Alternative Dispute Resolution Act of 2004, should it determine that such mode will resolve the dispute more quickly, fairly and efficiently than the court SECTION 27. Dismissal of Petition. — If the petition is dismissed pursuant to paragraph (b) of Section 25 hereof, then the court may, in its discretion, order the petitioner to pay damages to any creditor or to the debto r, as the case may be, who may have been injured by the filing of the petition , to the extent of any such injury Trigger Events that Result in the Application of Legal Provisions that Require the Status of Insolvency : o Due Course Order o Conversion of proceedings order Rehabilitation receiver must, in all cases, submit a report on the viability of the rehabilitation of the distressed debtor Actions of The Court: o Due Course o Dismiss + damages o Conversion to liquidation proceedings Court Supervised; Voluntary & Involuntary Proceedings; Common Provisions; Rehabilitation Receiver General Concepts
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[COMMODATUNTS] SECTION 4. Definition of Terms— Rehabilitation receiver shall refer to the person or persons, natural or juridical, appointed as such by the court pursuant to this Act and which shall be entrusted with such powers and duties as set forth herein SECTION 28. Who May Serve as a Rehabilitation Receiver.
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  • Summer '14
  • Atty.Jamon
  • Bankruptcy, rehabilitation receiver

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