FRIA OF 2010

Challenge of Claims (Sec. 45,

Jurisdictional Requirements: (Sec. 8 (G-H) Rule 2 FRIA; Sec. 45 R2)
Publisher’s affidavit- Publication in Newspaper of Within 30 days from
general circulation for 2 consecutive weeks; 1st is expiration of inspection of the
Contents of
within 7 days from issuance registry of claims.
Commencement Order
Verified Petitioner’s Affidavit- Personal delivery of Order and
Petition Terminate
petition to local creditors within 5 days from issuance; Petitioner to pay
Direct Publication proceedings
notify foreign creditors within 15 days damages to who may
(Sec. 13 R2) Rehabilitation Receiver
have been injured by
must submit to the
Individual or Juridical Dismiss the petition if: filing of the petition (Sec.
COURT court the registry of
Appoint No conflict of interest Debtor not insolvent 27. FRIA; Sec. 19 R2)
ACTION claims upon expiration
Rehabilitation File a bond and take oath (Sec. 29, R2) Petition is a sham filing intended
of 30 days
Receiver (RR) Establish Registry of Claims within 20 days from to delay enforcement of the
(Sec. 25, FRIA) assumption of duties (Sec. 44, FRIA) rights of the creditors
Aggrieved Party may Petition, Rehabilitation Plan and
Filing of Creditor’s
at least 5 days before initial hearing appeal the decision of attachments contain materially Convert the
Claim (Sec. 8 (m), Finding merit on the
if claim is not listed in the schedule of debts and the rehabilitation false or misleading statements proceedings into one
Issuance of Sec. 12 R2) objections, defect is
is petition liabilities but belated filed, will not participate in receiver on a claim by Debtor has committed acts of for liquidation if:
Commencement Order with filing a motion with misrepresentation or fraud not cured, finding
sufficient in Filing of verified proceedings but will be entitled to receive Debtor is insolvent;
Yes. Stay/ Suspension Order rehabilitation court debtor is in bad
form and comment/opposition distributions (Sec. 12 R2) there is failure of
within 5 working days within 5 days faith(Sec.65, R2)
substance? of Creditors, BIR, all rehabilitation
(Sec. 16, FRIA;Sec. 8 Rule 2) Basis of
interested parties
objection was
Prohibit debtor’s Court to decide at the If no Rehab Plan was confirmed Hearing on cured or debtor
5 days

suppliers from soonest possible time. objections complied with

withholding supply of (Sec. 2 Rule 2) The Court has one (1) an order to cure
NO. goods year to confirm RP the objections
Creditor’s comment on
Submission of report of Within ten (10)
the petition and
Authorize payment of the Rehabilitation days from the Creditors may file
Rehabilitation Plan, submit
administrative Receiver, within 40 receipt of the objections within 20 Court Objections lack
Court Discretion (Sec. 7 Initial Hearing (Section 14, comments to the court and
expenses days from the initial report, the Court days from receipt of action merit
Rule 2): R2) to the RR within a period of
is petition hearing, with or without may- notice
within 5 days from notice, Set the case for initial not more than 20 days
sufficient in comments. (Sec. 24, (Sec. 26, FRIA;
for petitioner to hearing at a date no from initial hearing (Sec.
form and FRIA; Sec. 16, R2) Sec. 17, R2)
amend/supplement the later than forty (40) 22, FRIA)
substance?
petition days from the date of No objections
filing

Within 20 days
NO. Stay or Suspension Give due course: Within 5 days from
Order Debtor is insolvent; receipt of RP, Court will
and notify the creditors
Substantial Order of
that the RP has been
Dismiss Confirmation of the
likelihood to be submitted for Within 5 days, the
Petition Rehabilitation Plan
successfully confirmation Court may motu
rehabilitated proprio grant or deny
The debtor, RR or any the motion
creditor may file a
verified petition to
Terminate amend the Plan
Proceedings Court may refer any Rehabilitation Receiver Court will direct RR to Breach or Failure of
Court will issue order
dispute to arbitration must confer with Debtor review, review and/or Discharge of Rehabilitation (Sec.
directing RR to call a meeting
or other modes of RR will review and and all the classes of recommend action on the Rehabilitation Receiver- 73, R2)
with the debtor and all classes
dispute resolution revise the Rehabilitation Creditors (Sec. 63, Rehabilitation Plan and RR shall submit a report
of creditors to take place
under RA 9285 or the Plan (Sec. 26, 63, 64, FRIA); formation of submit the same or new on and accounting to the
within not less than 2 weeks
Alternative Dispute FRIA) Creditors’ Committee to the court within a period court within thirty (30)
nor more than 4 weeks (Sec.
Resolution (Sec. 26, (Sec. 39 R 2; Sec. 42, of not more than ninety days from such
39, R2; Sec. 42, FRIA)
FRIA; Sec. 18 R2) FRIA) (90) days confirmation for the
approval of the court
Dettermine the creditors
Hear and determine any objections to the qualifications or
appointment of RR RR to notify court, Issue any other
Direct the creditors to comment on the Petition & Rehabilitation Plan Approved, if creditors, and order to remedy
Direct RR to evaluate the financial condition of the debtor and to Creditors meeting the breach
members of the said stakeholders of the Implementatio
prepare and submit to the court within 40 days from the initial to approve consistent with
class holding more than approval or rejection of n of the
hearing under Sec. 24, FRIA rehabilitation the Act and
fifty percent (50%) of the RP within 5 days Rehabilitation
Determine reasonableness of RR’s fees (Sec. 22, FRIA; Sec. 14, R2) plan, within 20 these Rules
the total claims of the from such voting (Sec. Plan
Hold additional hearings- must be concluded not later than 90 days days from Enforce the
said class vote in favor 62, R2)
from the first hearing (Sec. 15, R2) notification by RR applicable
of the Plan
provisions of the
Rehabilitation
Submission of Plan through a
Rehabilitation Plan by writ ofexecution
RR to the Court for (Sec. 73, R2)
confirmation Successful
Rejected by Creditors or Rehabilitation
Deemed Rejected unless
approved by all classes of
creditors whose rights are
adversely modified or Notwithstanding the rejection of the RP by the creditors (Sec. 64, 68, FRIA)
affected by the Plan
Termination of
Proceedings