Article 18p. 18

SPECIAL RULES OF PROCEDURE SUPPLEMENT TO THE RULES OF COURT

Section 8. Revocation of Approved Rehabilitation Plan.

- Not later than thirty (30) days from the approval of a

rehabilitation plan under this Rule, the plan may, upon

motion and after notice and hearing, be revoked on the

ground that the approval was secured by fraud or that

the petitioner has failed to cure the defect ordered by

the court pursuant to Section 5 of this Rule.

Section 9. Effect of Rule on Pending Petitions. - Any

pending

petition

for

rehabilitation

that

has

not

undergone the initial hearing prescribed under the

Interim Rules of Procedure for Corporate Rehabilitation

at the time of the effectivity of these Rules may be

converted into a rehabilitation proceeding under this

Rule.

RULE 7 RECOGNITION OF FOREIGN

PROCEEDINGS

Section 1. Scope of Application. - This Rule applies

where (a) assistance is sought in a Philippine court by a

foreign court or a foreign representative in connection

with a foreign proceeding; (b) assistance is sought in a

foreign State in connection with a domestic proceeding

governed by these Rules; or (c) a foreign proceeding

and a domestic proceeding are concurrently taking

place.

The sole fact that a petition is filed pursuant to this Rule

does not subject the foreign representative or the

foreign

assets

and

affairs

of

the

debtor

to

the

jurisdiction of the local courts for any purpose other

than the petition.

Section 2. Non-Recognition of Foreign Proceeding. -

Nothing in this Rule prevents the court from refusing to

take an action governed by this Rule if (a) the action

would be manifestly contrary to the public policy of the

Philippines; and (b) if the court finds that the country of

which the petitioner is a national does not grant

recognition to a Philippine rehabilitation proceeding in

a manner substantially in accordance with this Rule.

Section

3.

Petition

for

Recognition

of

Foreign

Proceeding. - A foreign representative may apply with

the Regional Trial Court where the debtor resides for

recognition of the foreign proceeding in which the

foreign representative has been appointed.

A petition for recognition shall be accompanied by:

(a) A certified copy of the decision commencing the

foreign

proceeding

and

appointing

the

foreign

representative; or

(b) A certificate from the foreign court affirming the

existence

of

the

foreign

proceeding

and

of

the

appointment of the foreign representative; or

(c)

In

the

absence

of

evidence

referred

to

in

subparagraph

(a)

and

(b),

any

other

evidence

acceptable to the court of the existence of the foreign

proceeding and of the appointment of the foreign

representative.

Section 4. Recognition of Foreign Proceeding. - A

foreign proceeding shall be recognized if:

(a) The proceeding is a foreign proceeding as defined

herein;

(b) The person or body applying for recognition is a

foreign representative as defined herein; and

(c) The petition meets the requirements of Section 3 of

this Rule;

Section 5. Period to Recognize Foreign Proceeding. - A

petition for recognition of a foreign proceeding shall be

decided within thirty (30) days from the filing thereof.

Section 6. Notification to Court. - From the time of

filing

the

petition

for

recognition

f

the

foreign

proceeding, the foreign representative shall inform the

court promptly of:

(a) Any substantial change in the status of the foreign

proceeding or the status of the foreign representative's

appointment; and

(b) Any other foreign proceeding regarding the same

debtor

that

becomes

known

to

the

foreign

representative.

Section 7. Provisional Relief that May be Granted upon

Application for Recognition of Foreign Proceeding. -

From the time of filing a petition for recognition until

the same is decided upon, the court may, upon motion

of the foreign representative where relief is urgently

needed to protect the assets of the debtor or the

interests of the creditors, grant relief of a provisional

nature, including:

(a) Staying execution against the debtor's assets;

(b) Entrusting the administration or realization of all or

part of the debtor's assets located in the Philippines to

the

foreign

representative

or

another

person

designated

by

the

court

in order to protect and

preserve the value of assets that, by their nature or

because

of

other

circumstances,

are

perishable,

susceptible to devaluation or otherwise in jeopardy;

(c) Any relief mentioned in Section 9(a)(1), (2) and (7) of

this Rule.

Section

8.

Effects

of

Recognition

of

Foreign

Proceeding. - Upon recognition of a foreign proceeding:

(a)

Commencement

or

continuation

of

individual

actions

or

individual

proceedings

concerning

the

debtor's assets, rights, obligations or liabilities is stayed;

provided, that such stay does not affect the right to

commence individual actions or proceedings to the

extent necessary to preserve a claim against the debtor.

(b) Execution against the debtor's assets is stayed; and

(c) The right to transfer, encumber or otherwise dispose

of any assets of the debtor is suspended.

Section

9.

Relief

That

May

be

Granted

After

Recognition of Foreign Proceeding. -

(a) Upon recognition of a foreign proceeding, where

necessary to protect the assets of the debtor or the

interests of the creditors, the court may, upon motion of

the foreign representative, grant any appropriate relief

including:

(1) Staying the commencement or continuation of

individual actions or individual proceedings concerning

the debtor's assets, rights, obligations or liabilities to the

extent they have not been stayed under Section 8(a) of

this Rule;

(2) Staying execution against the debtor's assets to the

extent it has not been stayed under Section 8(b) of this

Rule;

(3) Suspending the right to transfer, encumber or

otherwise dispose of any assets of the debtor to the

extent this right has not been suspended under Section

8(c) of this Rule;

(4) Providing for the examination of witnesses, the

taking

of

evidence

or

the

delivery of information

concerning

the

debtor's

assets,

affairs,

rights,

obligations or liabilities;

(5) Entrusting the administration or realization of all or

part of the debtor's assets located in the Philippines to

the

foreign

representative

or

another

person

designated by the court;

(6) Extending the relief granted under Section 7 of this

Rule;

(7) Granting any additional relief that may be available

to the rehabilitation receiver under these laws.

(b) Upon recognition of a foreign proceeding, the court

may,

at the request of the foreign representative,

entrust the distribution of all or part of the debtor's

assets

located

in

the

Philippines

to

the

foreign

representative or another person designated by the

© Compiled By RGL

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