WHEN AN AUTOMATIC STAY ORDER MAY BE LIFTED

The Interim Rules of Procedure for Corporate Rehabilitation provide that the stay order shall be issued not later than five [5] days from the filing of the petition. [Rule 4, Section 6] Generally, this stay order
shall be effective during the whole of the proceedings for suspension of payments, from its issuance until its termination. [Rule 4, Section 11].

Thus, this stay order may be lifted in two instances:

1. When the proceedings are terminated.

2. When relief from, modification, or termination of stay order has been filed, or motu proprio granted by the court, upon showing that:
a. Any of the allegation in the petition, or any of the contents of any attachment, or the verification thereof has ceased to be true;
b. A creditor does not have adequate protection over property securing the claim; or
c. The debtor’s secured obligation is more than the fair market value of the property subject of the stay and such property is not necessary for the rehabilitation of the debtor.

THE CREDITOR SHALL LACK ADEQUATE PROTECTION IF IT CAN BE SHOWN THAT:
1. The debtor fails or refuses to honor a preexisting agreement with the creditors to keep
the property insured;
2. The debtor fails or refuses to take commercially reasonable steps to maintain the property; or
3. The property has depreciated to an extent that the creditor is unsecured [Rule 4,Section 12]

Note: The court may motu proprio grant relief from stay. Furthermore, this relief is subject to the caveat that it may be denied if it would prevent the continuation of the debtor as a going concern or otherwise prevent the approval and implementation of the rehabilitation plan.