You are on page 1of 1

Owner / Proprietor

FRIA CHART
REHABILITATION Voluntary Majority of partners

SOLE
PROPRIETORSHIP
1. Majority of BOD
Rehabilitation Plan: 2. 2/3 OCS / Members
 - Approved by 50% (S12)
of total claims
 - No approval Requirements:
needed if approved 1. 3 or more Creditors
by Court 2. Aggregate claim of at
Creditor / group of creditors with Voluntary
aggregate claim of: least 1M or  25% subscr'd
1. at least 1M, or capital stock / partner
Involuntary contribution, whichever is
2. at least 25% of subscribed capital
higher
Rehab Stay Order: stock / partner's contributions
 - Suspends all claims, Whichever is higher PARTNERSHIP LIQUIDATION
money or otherwise,
including secured creditors

EXCEPT:
1. Pending with SC Involuntary
2. Pending at quasi judicial Endorsed/approved by creditors
(discretionary on court) holding at least 2/3 of liabilities,
Pre-Negotiated including:
3. Solidary liabilities
4. Held securities in 1. 50% total secured
2. 50% total unsecured (S76) Aggregate debt/claim of at Liquidation Order:
securities market
least 500k  - Dissolves juridical existence
5. Clearing of financial inst. CORPORATION  - Does not affect Secured Creditors
6. Criminal actions
If involuntary, must allege
any one of the facts in S105 Secured Creditor:
(Generally fraud or chance 1. If he maintains right under the lein:
to evade claims)  - value may be agreed by liquidator
Verified Petition to suspend and creditor. If less than claim, creditor
Suspension Order Creditor's Meeting
payments. Debtor must have may claim balance in proceeding
 - suspends any pending  - Attended by 3/5 of total
sufficient properties to cover Individual Debtor  - If value is more than claim, liquidator
execution against debtor liabilities
liabilities, but foresee SUSPENSION OF  - vs Sole Prop: this one may give it and waive right of
 - proposed agreement redemption after receiving the excess
Not affected: impossibility of meeting them as PAYMENTS does not stem from
must be approved by 2/3  - Liquidator may also just give the
1. Secured creditors they fall due business relations
of creditors, representing property, or creditor may enforce the
2. Claims for personal labor, 3/5 of total liability
ATTACH: Proposed Agreement claim
maintenance, expense for
***Still subject to 180-day stay order
last illness and funeral within
60 days before petition STANDSTILL PERIOD 2. Creditor may waive rights over the
 - Agreed upon pending finalization of property and participate in liquidation
out-of-court rehab
MINIMUM REQUIREMENTS:
ANYONE can file. Sole prop, 1. Debtor must agree
OUT OF COURT Requirements:
Partnership, Corp, or Individual 2. Approved by 67% secured creditor
REHABILITATION 1. Standstill is agreed upon by 50%
Debtor (Sec 84) 3. Approved by 75% unsecured
total liabilities
4. Approved by 85% total liabilities
2. Notice 1x/wk for 2wk
3. Standstill period does not exceed
120 days from effectivity