FINANCIAL REHABILITATION AND INSOLVENCY ACT (FRIA)
Four. Financial Rehabilitation and Insolvency
Four point two. Suspension of Payments
Four point four. Liquidation
Nature of FRIA Proceedings
Summary of Distinction for FRIA Proceedings
Three Types of Rehabilitation
Summary of Distinction as to Different Rehabilitation Types
COURT-SUPERVISED REHABILITATION Step One: File a Petition
. Indispensable Attachments to the Petition:
Approval of a Rehabilitation Plan Either of the following:
Rehabilitation Plan Submission, Objection, and Confirmation
Who Manages the Business of the Debtor?
Principal Duties of a Rehabilitation Receiver
Step Two: Issuance of a Commencement and Stay Order
Restrictions Imposed: As to the Debtors
Exceptions to the Stay Order (Not Covered):
If any of the following is present:
In any of the following instances:
PRE-NEGOTIATED REHABILITATION
Approval of the Rehabilitation Plan Must first be approved by:
Issuance of an Order by the Court Within five working days from filing.
Grounds for an Objection Must be submitted within eight days from the second publication.
Hearing on Objections Within twenty to thirty days from the second publication.
OUT-OF-COURT REHABILITATION
Approval of the Rehabilitation Plan
Publication Requirement and Effectivity of Approved Plan
Standstill Period or Agreement
Non-Participating Creditors
Step one: File a Petition
Conversion from Rehabilitation to Liquidation
Step two: Issuance of Liquidation Order
What's in a Liquidation Order?
Directs all creditors to file their claims with the liquidator within the period set.
Step Three: Court Action of Approved Liquidation Plan