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1. Filing verified petition with the appropriate RTC by
a. corporate debtor who foresees the impossibility of meeting its debts when they respectively fall due; or
b. creditors holding at least 25% of the debtor’s total liabilities.
2. The following shall be annexed to the petition:
a. audited financial statements at end of its last fiscal year;
b. interim financial statement;
c. Schedule of debts and liabilities;
d. Inventory of assets;
e. Rehabilitation plan;
f. Schedule of payments and disposition of assets effected within 3 months preceding the filing of the petition;
g. Schedule of cash flow for the last 3 months;
h. Statement of possible claims;
i. Affidavit of general financial condition;
j. At least 3 nominations for rehabilitation receiver;
k. Certificate under oath that directors and stockholders have irrevocably approved/consented to all
actions/matters necessary under the rehabilitation plan.
3. The court shall issue the stay order not later than 5 days from the filing of the petition, which among others shall:
a. appoint a rehabilitation receiver;
b. stay all actions for claims against the debtor, which shall cover both secured and unsecured creditors;
c. set an initial hearing for the petition (not earlier than 45 days but not later 60 days from filing of the petition); and
d. direct the creditors to file their verified comment or opposition not later than 10 days before the initial; their failure to do so would bar them from participating in the proceedings.
4. Publication of the stay orders in a newspaper of general circulation for 2 consecutive weeks;
5. Referral of rehabilitation plan to rehabilitation receiver;
6. Meetings between corporate debtor with creditors. Discussions on the rehabilitation plans;
7. Submission of final rehabilitation plan to the RTC for approval;
8. The petition shall be discussed (which result into the automatic lifting of the stay order unless RTC ordered otherwise) if no rehabilitation plan is approved 180 days from initial hearing.
9. Approval or disapproval of the rehabilitation plan by RTC.
a. corporate debtor who foresees the impossibility of meeting its debts when they respectively fall due; or
b. creditors holding at least 25% of the debtor’s total liabilities.
2. The following shall be annexed to the petition:
a. audited financial statements at end of its last fiscal year;
b. interim financial statement;
c. Schedule of debts and liabilities;
d. Inventory of assets;
e. Rehabilitation plan;
f. Schedule of payments and disposition of assets effected within 3 months preceding the filing of the petition;
g. Schedule of cash flow for the last 3 months;
h. Statement of possible claims;
i. Affidavit of general financial condition;
j. At least 3 nominations for rehabilitation receiver;
k. Certificate under oath that directors and stockholders have irrevocably approved/consented to all
actions/matters necessary under the rehabilitation plan.
3. The court shall issue the stay order not later than 5 days from the filing of the petition, which among others shall:
a. appoint a rehabilitation receiver;
b. stay all actions for claims against the debtor, which shall cover both secured and unsecured creditors;
c. set an initial hearing for the petition (not earlier than 45 days but not later 60 days from filing of the petition); and
d. direct the creditors to file their verified comment or opposition not later than 10 days before the initial; their failure to do so would bar them from participating in the proceedings.
4. Publication of the stay orders in a newspaper of general circulation for 2 consecutive weeks;
5. Referral of rehabilitation plan to rehabilitation receiver;
6. Meetings between corporate debtor with creditors. Discussions on the rehabilitation plans;
7. Submission of final rehabilitation plan to the RTC for approval;
8. The petition shall be discussed (which result into the automatic lifting of the stay order unless RTC ordered otherwise) if no rehabilitation plan is approved 180 days from initial hearing.
9. Approval or disapproval of the rehabilitation plan by RTC.
