I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
FRIA proceedings are done in court, generally. However, the parties in the rehabilitation are also allowed to settle the matter among themselves without need for a costly trial. The FRIA law recognizes this.
In order for an out-of-court rehab (also known as an informal restructuring agreement) requires all the following to be present:
1.) Debtor's consent
2.) Approval of secured creditors (at least 67% of the secured obligations)
3.) Approval of unsecured creditors (at least 75% of the unsecured obligations)
4.) Approval of both secured and unsecured creditors (at least 85% of the total liabilities, secured or unsecured)
Standstill Period
While negotiations on the out-of-court rehab plan are ongoing, a standstill period can be agreed on if the following requisites are present:
1.) The agreement is approved by the creditors representing at more than 50% of the debtor's total liabilities
2.) Notice of the agreement is published in a newspaper of general circulation once a week for 2 consecutive weeks
3.) The standstill period has a maximum of 120 days, beginning from the date it takes effect
If the out-of-court rehab plan is approved, notice of the approval must be published once a week in a newspaper of general circulation for 3 consecutive weeks. The rehabilitation plan will then take effect after 15 days from the date of the notice's last publication.
The parties can ask for court assistance in the implementation of the rehab. Pending actions or proceedings in relation to the rehab will not suspend the implementation unless the requesting party asks for a TRO or an action for injunctive relief from the CA.
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