Provision

Petitioner

General
Conditions

Voluntary
Rehabilitation (Debtor
Initiated Court
Supervised)

Involuntary
Rehabilitation (Creditor
Initiated Court
Supervised)

Pre-Negotiated
Rehabilitation

Informal
Rehabilitation

Section 12

Section 13

Section 76

Section 83

Debtor

Creditors

Debtor who may

be joined by any of
its creditors

None

- in case of a corporation, by
a majority vote of the board
of directors or trustees and
authorized by a vote of the
stockholders representing at
least two-thirds (2/3) of the
outstanding capital stock, or
in case of a non-stock
corporation, by the vote of
at least two-thirds (2/3) of
the members.

- creditors must have an

aggregate
claim
of
PhP1,000,000.00 or at least
25 % of the subscribed capital
stock
or
partner's
contributions, whichever is
higher provided that:

- in case of a partnership,
the approval of a majority of
the partners.

(a) there is no genuine issue of

fact or law on the claim/s and
due
and
demandable
payments have not been
made for at least 60 days or
debtor
has
generally
defaulted on obligations as
they fall due; or
(b) a creditor, other than
petitioner/s, has initiated
foreclosure
proceedings
against the debtor that will
prevent the debtor from
paying its debts as they fall
due.

Pre-negotiated
Rehabilitation
Plan
which
has
been
endorsed or approved
by creditors holding at
least two-thirds (2/3) of
the total liabilities of
the debtor, including
secured
creditors
holding more than fifty
percent (50%) of the
total secured claims of
the
debtor
and
unsecured
creditors
holding more than fifty
percent (50%) of the
total unsecured claims
of the debtor.

- debtor must agree to

the
out-of-court
or
informal
restructuring/workout
agreement
or
Rehabilitation Plan
- it must be approved by
creditors representing at
least sixty-seven percent
(67%) of the secured
obligations of the debtor
- it must be approved by
creditors representing at
least
seventy-five
percent
(75%) of the unsecured
obligations of the debtor
- it must be approved by
creditors holding at least
eighty-five
percent
(85%)
of
the
total
liabilities, secured and
unsecured, of the debtor.