Suspension Order Effects:: Provided, That Any Final and Executory Judgment Arising From Such Appeal Shall Be

SUSPENSION ORDER
EFFECTS:
1) suspends all actions or proceedings for the enforcement of claims against the debtor
2) suspends all actions to enforce any judgment, attachment or other provisional remedies
against the debtor
3) prohibits the debtor from selling, encumbering, transferring or disposing in any manner
any of its properties except in the ordinary course of business
4) prohibits the debtor from making any payment of its liabilities outstanding as of the
commencement date except as may be provided
5) shall not be deemed in any way to diminish or impair the security or lien of a secured
creditor, or the value of his lien or security, except that his right to enforce the security
or lien may be suspended during the term of the Suspension Order
EXCEPTIONS:
1) cases already pending appeal in the Supreme Court as of commencement date:
Provided, That any final and executory judgment arising from such appeal shall be
referred to the court for appropriate action
2) subject to the discretion of the court, to cases pending or filed at a specialized court or
quasi-judicial agency which, upon determination by the court, is capable of resolving the
claim more quickly, fairly and efficiently than the court: Provided, That any final and
executory judgment of such court or agency shall be referred to the court and shall be
treated as a non- disputed claim
3) to the enforcement of claims against sureties and other persons solidarily liable with the
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
4) to any form of action of customers or clients of a securities market participant to recover
or otherwise claim moneys and securities entrusted to the latter in the ordinary course
of the latter's business as well as any action of such securities market participant or the
appropriate regulatory agency or self-regulatory organization to pay or settle such
claims or liabilities
5) to the actions of a licensed broker or dealer to sell pledged securities of a debtor
pursuant to a securities pledge or margin agreement for the settlement of securities
transactions in accordance with the provisions of the Securities Regulation Code and its
implementing rules and regulations
6) the clearing and settlement of financial transactions through the facilities of a clearing
agency or similar entities duly authorized, registered and/or recognized by the
appropriate regulatory agency like the BSP and the SEC as well as any form of actions
of such agencies or entities to reimburse themselves for any transactions settled for the
debtor
7) any criminal action against the individual debtor or owner, partner, director or officer of a
debtor shall not be affected by any proceeding commenced under FRIA
APPLICABILITY
- government financial institutions, notwithstanding provisions in their charters or
other laws to the contrary
17. REHABILITATION RECEIVER

-any qualified person or persons, natural or juridical that acquire the property and assets
of the debtor as of commencement date
1) 3 nominated in the creditor’s petition for rehabilitation
2) if it is a juridical entity, it must designate a natural person/s who possess/es all of
the qualifications, being solidarily liable
3) appointed in the Commencement Order who may or not be among the list of
nominees
QUALIFICATIONS
1) Filipino citizen or resident of the Phillipines in the 6 months prior to his
nomination
2) Of good moral character and acknowledged integrity, impartiality and
independence
3) Has requisite knowledge of insolvency and other relevant commercial laws, rules
and procedures, as well as relevant training and/or experience that may enable
him to properly discharge his duties and obligations
4) Has no conflict of interest, provided that such conflict of interest may be waived
expressly or impliedly by any party who may be prejudiced
POWERS
- Shall be deemed an officer of the court
- the right to review and obtain all records to which the debtor’s management and
director have access, including bank accounts of the debtor, subject to the
approval by the court of the performance bond filed by the rehabilitation receiver
- recommends to the court which properties of the debtor are necessary for the
rehabilitation
- shall be entitled to compensation for reasonable fees from the debtor
- shall not be subject to any action, claim or demand in connection with any acts
done or omitted to be done in good faith
FUNCTIONS AND DUTIES

- Prior to entering his duties and responsibilities, shall take an oath and file a bond
conditioned upon the faithful discharge of powers, duties and responsibilities
- Establish a preliminary registry of claims
- sufficiently monitors the debtor’s business for the protection of the creditors
- submits a report based on preliminary evaluation stating that the underlying
assumptions and financial goals in the Rehabilitation Plan are realistic, feasible
and reasonable, or if not, that there is a substantial likelihood for the debtor to be
rehabilitated
- to implement the Rehabilitation Plan
- may recommend the appointment of a management committee over the debtor
- may employ specialized professionals and other experts to assist in the
performance of duties
- evaluates the financial condition of the debtor and submits the report to the court
within 40 days from the initial hearing
- attend the Creditor’s meeting
GROUNDS FOR REMOVAL

1) Incompetence, gross negligence, failure to perform or failure to exercise the
proper degree of care in the performance of his duties and powers
2) Lack of particular competency required
3) Illegal acts or conduct in the performance of his duties and powers
4) Lack of qualification or presence of any disqualification
5) Conflict of interest arising after his appointment
6) Manifest lack of independence that is detrimental to the general body of
stakeholders
18. REHABILITATION PLAN

- a plan by which the financial well-being and viability of the insolvent debtor can be
restored using various means including, but not limited to, debt forgiveness, debt
rescheduling, reorganization or quasi-reorganization, dacion en pago, debt-equity
conversion and sale of the business or setting up of a new business
19. CRAM-DOWN POWER

- The Court may approve a Rehabilitation Plan over the opposition of creditors, holding
a majority of the total liabilities of its debtor, if in its judgment, the rehabilitation of the
debtor is feasible and the opposition of the creditors is manifestly unreasonable and
shall bind the creditors
20. MANAGEMENT OF THE COMPANY UNDER REHABILITATION

- Unless otherwise provided, the management of the juridical debtor shall remain with
the existing management subject to the applicable laws and agreements, if any, on the
election or appointment of directors, managers or managing partner. However, all
disbursements, payments or sale, disposal, assignment, transfer or encumbrance of
property, or any other act affecting title or interest in property, shall be subject to the
approval of the Rehabilitation Receiver and/or the Court

Suspension Order Effects:: Provided, That Any Final and Executory Judgment Arising From Such Appeal Shall Be

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Suspension Order Effects:: Provided, That Any Final and Executory Judgment Arising From Such Appeal Shall Be

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SUSPENSION ORDER

17. REHABILITATION RECEIVER

FUNCTIONS AND DUTIES

GROUNDS FOR REMOVAL

18. REHABILITATION PLAN

19. CRAM-DOWN POWER

20. MANAGEMENT OF THE COMPANY UNDER REHABILITATION

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