Article 19p. 19

SPECIAL RULES OF PROCEDURE SUPPLEMENT TO THE RULES OF COURT

court; provided that the court is satisfied that the

interests of local creditors are adequately protected.

Section 10. Protection of Creditors and Other Interested

Persons. -

(a) In granting or denying relief under this Rule or in

modifying or terminating the relief under paragraph (c)

of this Section, the court must be satisfied that the

interests of the creditors and other interested persons,

including the debtor, are adequately protected.

(b) The court may subject the relief granted under

Section 7 or Section 9. Of this Rule to conditions it

considers appropriate.

(c)

The

court

may,

upon

motion

of

the

foreign

representative or a person affected by the relief granted

under Section 7 or Section 9 of this Rule, or on its own

motion, modify or terminate such relief.

Section

11.

Actions

to

Avoid

Acts

Detrimental

to

Creditors. - Upon recognition of a foreign proceeding,

the foreign representative acquires the standing to

initiate actions to avoid or otherwise render ineffective

acts detrimental to creditors that are available under

these Rules.

Section 12. Intervention by Foreign Representative in

Philippine Proceedings. - Upon recognition of a foreign

proceeding, the foreign representative may intervene in

any action or proceeding in the Philippines in which

the debtor is a party.

Section 13. Cooperation and Direct Communication

with Foreign Courts and Foreign Representatives. - In

matters covered by this Rule, the court shall cooperate

to the maximum extent possible with foreign courts or

foreign representatives.

The court is entitled to communicate directly with, or

request information or assistance directly from, foreign

courts or foreign representatives.

Section 14. Forms of Cooperation. - Cooperation may

be implemented by any appropriate means, including

but not limited to the following:

(a) Appointment of a person or body to act at the

discretion of the court;

(b)

Communication

of

information

by

any

means

considered appropriate by the court;

(c) Coordination of the administration and supervision

of the debtor's assets and affairs;

(d)

Approval

or

implementation

by

courts

of

agreements

concerning

the

coordination

of

proceedings;

(e) Coordination of concurrent proceedings regarding

the same debtor;

(f) Suspension of proceedings against the debtor;

(g)

Limiting

the

relief

of

assets

that

should

be

administered in a foreign proceeding pending in a

jurisdiction other than the place where the debtor has

its

principal

place

of

business

(foreign

non-main

proceeding) or information required in that proceeding;

and

(h) Implementation of rehabilitation or re-organization

plan for the debtor.

Nothing in this Rule limits the power of the court to

provide

additional

assistance

to

the

foreign

representative under other applicable laws.

Section 15. Commencement of Local Proceeding after

Recognition

of

Foreign

Proceeding.

-

After

the

recognition of a foreign proceeding, a local proceeding

under these Rules may be commenced only if the

debtor is doing business in the Philippines, the effects

of the proceedings shall be restricted to the assets of

the debtor located in the country and, to the extent

necessary to implement cooperation and coordination

under Sections 13 and 14 of this Rule, to the other assets

of

the

debtor

that,

under

local

laws,

must

be

administered in that proceeding.

Section 16. Local and Foreign Proceedings. - Where a

foreign proceeding and a local proceeding are taking

place concurrently regarding the same debtor, the

court shall seek cooperation and coordination under

Section 13 and 14 of this Rule. Any relief granted to the

foreign proceeding must be made consistent with the

relief granted in the local proceeding.

RULE 8 PROCEDURAL REMEDIES

Section 1. Motion for Reconsideration. - A party may file

a motion for reconsideration of any order issued by the

court prior to the approval of the rehabilitation plan. No

relief can be extended to the party aggrieved by the

court's order on the motion through a special civil

action for certiorari under Rule 65 of the rules of Court.

Such order can only be elevated to the Court of Appeals

as an assigned error in the petition for review of the

decision

or

order

approving

or

disapproving

the

rehabilitation plan.

An order issued after the approval of the rehabilitation

plan can de reviewed only through a special civil action

for certiorari under Rule 65 of the Rules of Court.

Section

2.

Review

of

Decision

or

Order

on

Rehabilitation

Plan.

-

an

order

approving

or

disapproving a rehabilitation plan can only be reviewed

through a petition for review to the Court of Appeals

under Rule 43 of the Rules of Court within fifteen (15)

days from notice of the decision or order.

RULE 9 FINAL PROVISIONS

Section 1. Severability. - If any provision or section of

these Rules is held invalid, the other provisions or

sections shall not be affected thereby.

Section 2. Transitory Provision. - Unless the court orders

otherwise to prevent manifest injustice, 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 shall be governed by these

rules.

Section 3 . Effectivity. - These Rules shall take effect on

16 January 2009 following its publication in two (2)

newspapers of general circulation in the Philippines.

ANNEX "A" AFFIDAVIT OF GENERAL

FINANCIAL CONDITION

(1) Are you an officer of the debtor referred to in these

proceedings?

(2) What is your full name and what position do you

hold in the debtor?

(3) What is the full name of the debtor and what is the

address of its head office?

(4) When was it formed or incorporated?

(5) When did the debtor commence business?

(6) What is the nature of its business? What is the

market share of the debtor in the industry in which it is

engaged?

(7) Who are the parties, members, or stockholders?

How many employees?

(8) What is the capital of the debtor?

(9) What is the capital contribution and what is the

amount of the capital, paid and unpaid, of each of the

partners or shareholders?

(10) Do any of these people hold the shares in trust for

others?

(11) Who are the directors and officers of the debtors?

© Compiled By RGL

19 of 98