Article 12p. 12

SPECIAL RULES OF PROCEDURE SUPPLEMENT TO THE RULES OF COURT

(g) Intervention;

(h) Motion to hear affirmative defenses; and

(I) Any pleading or motion which is similar to or of like

effect as any of the foregoing.

Any pleading, motion, opposition, defense or claim filed

by any interested party shall be supported by verified

statements that the affiant has read same and that the

factual allegations therein are true and correct of his

personal knowledge or based on authentic records, and

correct

of

his

personal

knowledge

or

based

on

authentic records, and shall contain as annexes such

documents as may be deemed by the party court may

be decide matters on the basis of affidavits and other

documentary evidence. Where necessary, the court

shall conduct clarificatory hearings before resolving any

matter submitted to it for resolution.

Section 2. Venue. - Petitions for rehabilitation pursuant

to these Rules shall be filed in the regional trial court

which has jurisdiction over the principal office of the

debtor as specified in its articles of incorporation or

partnership.

Where

the

principal

office

of

the

corporation, partnership or association is registered in

the Securities and Exchange Commission as Metro

Manila, the action must be filed in the regional trial

court of the city or municipality where the head office is

located.

A joint petition by a group of companies shall be filed in

the Regional Trial Court which has jurisdiction over the

principal office of the parent company, as specified in

its Articles of Incorporation.

Section 3. Service of Pleadings and Documents. -

When so authorized by the court, any pleading and/or

document required by these Rules may be filed with

the court and/or served upon the other parties by

facsimile transmission (fax) or electronic mail (e-mail).

In such cases, the date of transmission shall be deemed

to be the date of service. Where the pleading or

document is voluminous, the court may, upon motion,

waive the requirement of service; provided that a copy

thereof together with all its attachments is duly filed

with the court and is made available for examination

and reproduction by any party, and provided, further,

that a notice of such filing and availability is duly served

on the parties.

Section

4.

Trade

Secrets

and

Other

Confidential

Information. - Upon motion, the court may issue an

order to protect trade secrets or other confidential

research,

development

or

commercial

information

belonging to the debtor.

Section 5. Executory Nature of Orders. - Any order

issued by the court under these Rules is immediately

executory. A petition to review the order shall not stay

the execution of the order unless restrained or enjoined

by the appellate court. Unless otherwise provided in

these Rules, the review of any order or decision of the

court or an appeal therefrom shall be in accordance

with the Rules of Court; provided, however, that the

reliefs ordered by the trial or appellate courts shall take

into account the need for resolution of proceedings in a

just, equitable and speedy manner.

Section

6.

Nullification

of

Illegal

Transfers

and

Preferences. - Upon motion the court may nullify any

transfer of property or any other conveyance, sale,

payment or agreement made in violation of its stay

order or in violation of these Rules.

Section 7. Stay Order. - If the court finds the petition to

be sufficient in form and substance, it shall; not later

than five (5) working days from the filing of the petition,

issue an order: (a) appointing a rehabilitation receive

and fixing his bond; (b) staying enforcement of all

claims, whether for money or otherwise and whether

such enforcement is by court action or otherwise,

against the debtor, its guarantors and persons not

solidarily liable with the debtor; provided, that the stay

order shall not cover claims against letters of credit and

similar security arrangements issued by a third party to

secure

the

payment

of

the

debtor's

obligations;

provided, further, that the stay order shall not cover

foreclosure by a creditor of property not belonging to a

debtor

under

corporate

rehabilitation;

provided,

however, that where the owner of such property sought

to be foreclosed is also a guarantor or one who is not

solidarily liable, said owner shall be entitled to the

benefit of excussion as such guarantor; (c) prohibiting

the debtor from selling, encumbering, transferring, or

disposing in any manner any of its properties except in

the ordinary course of business; (d) prohibiting the

debtor from making any payment of its liabilities

except as provided in items (e), (f) and (g) of this Section

or when ordered by the court pursuant to Section 10 of

Rule 3; (e) prohibiting the debtor's suppliers of goods or

services from withholding supply of goods and services

in the ordinary course of business for as long as the

debtor makes payments for the services and goods

supplied

after

the

issuance

of

the

stay

order; (f)

directing the payment in full of all administrative

expenses incurred after the issuance of the stay order;

(g) directing the payment of new loans or other forms

of

credit

accommodations

obtained

for

the

rehabilitation of the debtor with prior court approval; (h)

fixing the dates of the initial hearing on the petition not

earlier than forty-five (45) days but not later than sixty

(60) days from the filing thereof; (I) directing the

petitioner to publish the Order in a newspaper of

general circulation in the Philippines once a week for

two (2) consecutive weeks; (j) directing the petitioner to

furnish a copy of the petition and its annexes, as well as

the stay order, to the creditors named in the petition

and the appropriate regulatory agencies such as, but

not

limited

to,

the

Securities

and

Exchange

Commission,

the

Bangko

Sentral ng Pilipinas, the

Insurance

Commission,

the

National

Telecommunications Commission, the Housing and

Land Use Regulatory Board and the Energy Regulatory

Commission; (k) directing the petitioner that foreign

creditors with no known addresses in the Philippines be

individually given a copy of the stay order at their

foreign addresses; (l) directing all creditors and all

interested parties (including the regulatory agencies

concerned) to file and serve on the debtor a verified

comment

on

or

opposition

to

the

petition,

with

supporting affidavits and documents, not later than

fifteen (15) days before the date of the first initial

hearing and putting them on notice that their failure to

do

so

will

bar

them

from

participating

in

the

proceedings;

and

(m)

directing

the

creditors

and

interested parties to secure from the court copies of the

petition and its annexes within such time as to enable

themselves to file their comment on or opposition to

the petition and to prepare for the initial hearing of the

petition.

The issuance of a stay order does not affect the right to

commence

actions or proceedings insofar as it is

necessary to preserve a claim against the debtor.

Section 8. Service of Stay Order on Rehabilitation

Receiver. - The petitioner shall immediately serve a

copy of the stay order on the rehabilitation receiver

appointed

by

the

court,

who

shall

manifest

his

acceptance or non-acceptance of his appointment not

later than ten (10) days from receipt of the order.

Section 9. Period of Stay Order. - The stay order shall be

effective from the date of its issuance until the approval

of

the

rehabilitation

plan

or the dismissal of the

petition.

Section 10. Relief from, Modification, or Termination of

Stay Order. -

(a) The court may, upon motion, terminate, modify, or

set conditions for the continuance of the stay order, or

relieve

a

claim

from

the

coverage

thereof

upon

showing that (1) any of the allegations in the petition, or

any

of

the

contents

of

any

attachment,

or

the

verification thereof has ceased to be true; (2) a creditor

© Compiled By RGL

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