RULES OF PROCEDURE ON CORPORATE REHABILITATION
S O L
U T I O N
Acting on the Memorandum
of the Committee on SEC Cases submitting for this Court's consideration
and approval the Interim Rules of Procedure on Corporate
the Court Resolved to approve the same.
The Interim Rules
shall take effect on December 15, 2000 following its publication in two
(2) newspapers of general circulation not later than November 26, 2000.
November 21, 2000,
Davide, Jr., C.J.,
Bellosillo, Melo, Puno, Vitug, Kapunan, Mendoza, Panganiban,
Pardo, Buena, Gonzaga-Reyes, Ynares-Santiago and De Leon, Jr., JJ.,
RULES OF PROCEDURE ON CORPORATE REHABILITATION
Section 1. Scope.
- These Rules shall apply to petitions for rehabilitation filed by
partnerships, and associations pursuant to Presidential
Decree No. 902-A, as amended.
Sec. 2. Applicability
to Rehabilitation Cases Transferred from the Securities and Exchange
- Cases for rehabilitation transferred from the Securities and
Commission to the Regional Trial Courts pursuant to Republic
Act No. 8799, otherwise known as The Securities Regulation Code,
likewise be governed by these Rules.
OF TERMS AND CONSTRUCTION
Section 1. Definition
of Terms. - For purposes of these Rules:chanroblesvirtuallawlibrary
expenses" shall refer to those expenses incurred in the ordinary
of business of the debtor after the issuance of the stay order,
interest payable to creditors.
General Financial Condition" shall refer to a verified statement on
the general financial condition of the debtor required in Section 2,
4 of these Rules.
shall include the executive committee or the management of a
include all claims or demands of whatever nature or character against a
debtor or its property, whether for money or otherwise.
shall mean any holder of a Claim.
refer to the proper Regional Trial Court designated to hear and decide
the cases contemplated under these Rules.
mean any corporation, partnership, or association, whether supervised
regulated by the Securities and Exchange Commission or other government
agencies, on whose behalf a petition for rehabilitation has been filed
under these Rules.
shall include a member of a non-stock corporation or association, in a
Sec. 2. Construction.
- These Rules shall be liberally construed to carry out the objectives
of Sections 5(d), 6(c) and 6(d) of Presidential
Decree No. 902-A, as amended, and to assist the parties in
a just, expeditious, and inexpensive determination of cases. Where
the Rules of Court
shall apply suppetorily to proceedings under these Rules.
Section 1. Nature
of Proceedings. - Any proceeding initiated under these Rules shall
be considered in rem. Jurisdiction over all those affected by the
shall be considered as acquired upon publication of the notice of the
of the proceedings in any newspaper of general circulation in the
in the manner prescribed by these Rules.
The proceedings shall
also be summary and non-adversarial in nature. The following pleadings
a. Motion to
bill of particulars;
trial or for reconsideration;
h. Reply or
Any pleading, motion,
opposition, defense, or claim filed by any interested party shall be
by verified statements that the affiant has read the same and that the
factual allegations therein are true and correct of his personal
or based on authentic records and shall contain as annexes such
as may be deemed by the party submitting the same as supportive of the
allegations in the affidavits. The court may decide matters on the
of affidavits and other documentary evidence. Where necessary, the
shall conduct clarificatory hearings before resolving any matter
to it for resolution.
Sec. 2. Venue.
- Petitions for rehabilitation pursuant to these Rules shall be filed
the Regional Trial Court having jurisdiction over the territory where
debtor's principal office is located.
Sec. 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
or electronic mail (e-mail). In such cases, the date of transmission
be deemed to be the date of service. In case of a voluminous pleading
document, the Court may motu proprio or upon motion, waive the
of service, provided, 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.
Sec. 4. Trade
Secrets and Other Confidential Information. - On motion or on its
initiative, the court may issue an order to protect trade secrets or
confidential research, development, or commercial information
to the debtor.
Sec. 5. Executory
Nature of Orders. - Any order issued by the court under these Rules
is immediately executory. A petition for review or an appeal therefrom
shall not stay the execution of the order unless restrained or enjoined
by the appellate court. The review of any order or decision of the
or an appeal therefrom shall be in accordance with the Rules
of Court: Provided, however, that the reliefs ordered by
trial or appellate courts shall take into account the need for
of proceedings in a just, equitable, and speedy manner.
Section 1. Who
May Petition. - Any debtor who foresees the impossibility of
its debts when they respectively fall due, or any creditor or creditors
holding at least twenty-five percent (25%) of the debtor's total
may petition the proper Regional Trial Court to have the debtor placed
Sec. 2. Contents
of the Petition. - The petition filed by the debtor must be
and must set forth with sufficient particularly all the following
facts: (a) the name and business of the debtor; (b) the nature of the
of the debtor; (c) the history of the debtor; (d) the cause of its
to pay its debts; (e) all the pending actions or proceedings known to
debtor and the courts or tribunals where they are pending; (f) threats
or demands to enforce claims or liens against the debtor; and (g) the
by which the debtor may be rehabilitated and how such rehabilitation
benefit the general body of creditors, employees, and stockholders.
The petition shall
be accompanied by the following documents:chanroblesvirtuallawlibrary
statement of the debtor at the end of its last fiscal year;
statements as of the end of the month prior to the filing of the
and Liabilities which lists all the creditors of the debtor indicating
the name and address of each creditor, the amount of each claim as to
interest, or penalties due as of the date of filing, the nature of the
claim, and any pledge, lien, mortgage judgment, or other security given
for the payment thereof;
of Assets which must list with reasonable specificity all the assets of
the debtor, stating the nature of each asset, the location and
thereof, the book value or market value of the assets, and attaching
corresponding certificate of title therefor in case of real property,
the evidence of title or ownership in case of movable property, the
liens or claims thereon, if any, and the identifies and addresses of
lienholders and claimants. The Inventory shall include a Schedule of
Receivable which must indicate the amount of each, the persons from
due, the date of maturity, and the degree of collectibility
them as highly collectible to remotely collectible;
plan which conforms to the minimal requirements set out in the Section
5, Rule 4 of these Rules;
Payments and disposition of assets which the debtor may have effected
three (3) months immediately preceding the filing of the petition;
the Cash Flow of the debtor for three (3) months immediately preceding
the filing of the petition, and a detailed schedule of the projected
flow for the succeeding three (3) months;
Possible Claims by or against the debtor which must contain a brief
of the facts which might give rise to the claim and an estimate of the
probable amount thereof;
of General Financial Condition which shall contain answers to the
or matters prescribed in
j. At least
(3) nominees for the position of Rehabilitation Receiver as well as
qualifications and addresses, including, but not limited to their
numbers, fax number and e-mail address; and
attesting, under oath, that the (a) filing of the petition has been
authorized; and (b) the directors and stockholders have irrevocably
and/or consented to, in accordance with existing laws, all actions or
necessary and desirable to rehabilitate the debtor including, but not
to, amendments to the articles of incorporation and by-laws or articles
of partnership; increase or decrease in the authorized capital stock;
of bonded indebtedness; alienation, transfer, or encumbrance of assets
of the debtor; and modification of shareholders' rights.
Five (5) copies of its
petition shall be filed with the court.
Sec. 3. Verification
by Debtor. - The petition filed by the debtor must be verified by
affidavit of a responsible officer of the debtor and shall be in a form
substantially as follows:chanroblesvirtuallawlibrary
(position) of (name of petitioner), do solemnly swear that the
has been duly authorized to file the petition and that the stockholders
and board of directors (or governing body) have approved and/or
to, in accordance with law, all actions or matters necessary or
to rehabilitate the debtor. There is no petition for insolvency filed
any other body, court, or tribunal affecting the petitioner. The
of Assets and the Schedule of Debts and Liabilities contains a full,
and true description of all debts and liabilities and of all goods,
estate, and property of whatever kind or class belonging to petitioner.
The Inventory also contains a full, correct, and true statement of all
debts owing or due to petitioner, or to any person or persons in trust
for petitioner and of all securities and contracts whereby any money
hereafter become due or payable to petitioner or by or through which
benefit or advantage may accrue to petitioner. The petition contains a
concise statement of the facts giving rise, or which might give rise,
any cause of action in favor of petitioner. Petitioner has no land,
stock, expectancy, or property of any kind, except those set forth in
Inventory of Assets. Petitioner has, in no instance, created or
a debt for a greater sum than the true and correct amount. Petitioner,
its officers, directors, and stockholders have not, directly or
concealed, fraudulently sold or otherwise fraudulently disposed of, any
part of petitioner's real or personal property, estate, effects, or
of action, and petitioner, its officers, directors, and stockholders
not in any way compounded with any of its creditors in order to give
to such creditors, or to receive or to accept any profit or advantage
or to defraud or deceive in any manner any creditor to whom petitioner
is indebted. Petitioner, its officers, directors, and stockholders have
been acting in good faith and with due diligence.
Sec. 4. Creditor-initiated
Petitions. - Where the petition is filed by a creditor or
it is sufficient that the petition is accompanied by a rehabilitation
and a list of nominees to the position of Rehabilitation Receiver and
by a sworn statement that the affiant has read the petition and that
contents are true and correct of his personal knowledge or based on
records obtained from the debtor.
Sec. 5. Rehabilitation
Plan. - The rehabilitation plan shall include (a) the desired
targets or goals and the duration and coverage of the rehabilitation;
the terms and conditions of such rehabilitation which shall include the
manner of its implementation, giving due regard to the interests of
creditors; (c) the material financial commitments to support the
plan; (d) the means for the execution of the rehabilitation plan, which
may include conversion of the debts or any portion thereof to equity,
of the debts, dacion en pago, or sale of assets or of the
interest; (e) a liquidation analysis that estimates the proportion of
claims that the creditors and shareholders would receive if the
properties were liquidated; and (f) such other relevant information to
enable a reasonable investor to make an informed decision on the
of the rehabilitation plan.
Sec. 6. Stay Order.
- If the court finds the petition to be sufficient in form and
it shall, not later than five (5) days from the filing of the petition,
issue an Order (a) appointing a Rehabilitation Receiver and fixing his
bond; (b) staying enforcement of all claims, whether for money or
and whether such enforcement is by court action or otherwise, against
debtor, its guarantors and sureties not solidarily liable with the
(c) prohibiting the debtor from selling, encumbering, transferring, or
disposing in any manner any of its properties except in the ordinary
of business; (d) prohibiting the debtor from making any payment of its
liabilities outstanding as at the date of filing of the petition; (e)
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
debtor makes payments for the services and goods supplied after the
of the stay order; (f) directing the payment in full of all
expenses incurred after the issuance of the stay order; (g) fixing the
initial hearing on the petition not earlier than forty five (45) days
not later than sixty (60) days from the filing thereof; (h) directing
petitioner to publish the Order in a newspaper of general of general
in the Philippines once a week for two (2) consecutive weeks; (i)
all creditors and all interested parties (including the Securities and
Exchange Commission) to file and serve on the debtor a verified comment
on or opposition to the petition, with supporting affidavits and
not later than ten (10) days before the date of the initial hearing and
putting them on notice that their failure to do so will bar them from
in the proceedings; and (j) directing the creditors and interested
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
to the petition and to prepare for the initial hearing of the petition.
Sec. 7. Service
of Stay Order on Rehabilitation Receiver. - The petitioner shall
serve a copy of the stay order on the Rehabilitation Receiver appointed
by the court, who shall manifest his acceptance or non-acceptance of
appointment not later than ten (10) days from receipt of the order.
Sec. 8. Voidability
of Illegal Transfers and Preferences. - Upon motion or motu
the court may declare void any transfer of property or any other
sale, payment, or agreement made in violation of its stay order or in
of these Rules.
Sec. 9. Initial
Hearing. - On or before the initial hearing, the petitioner shall
the publisher's affidavit showing that the publication requirements
above had been complied with. If the court is satisfied that said
requirement had been complied with, it shall summarily hear the parties
on any matter relating to the petition as well as any comment and/or
filed in connection therewith. The court may hold additional
hearings where there is need to further clarify matters but in no event
shall such additional hearings be held beyond one hundred eighty (180)
days from the date of the initial hearing.
If, after the
hearing, the court is satisfied that there is merit in the petition, it
shall give due course to the petition and immediately refer the
and its annexes to the Rehabilitation Receiver who shall evaluate the
plan and submit his recommendations to the court not later than one
twenty (120) days from the date of the initial hearing.
Sec. 10. Opposition
to or Comment on the Petition. - Every creditor of the debtor or
interested party shall file his verified opposition to or comment on
petition not later than ten (10) days before the date of the initial
After such time, no creditor or interested party shall be allowed to
any comment or opposition thereto without leave of court.
of Debts and Liabilities omits a claim or liability, the creditor
shall attach a verified statement of the obligations allegedly due it
its comment or opposition.
likewise require the Securities and Exchange Commission to comment on
petition. The Commission shall coordinate with the government agency
in appropriate cases for purposes of filing its comment.
Sec. 11. Period
of the Stay Order. - The stay order shall be effective from the
of its issuance until the dismissal of the petition or the termination
of the rehabilitation proceedings.
be dismissal if no rehabilitation plan is approved by the court upon
lapse of one hundred eighty (180) days from the date of the initial
The court may grant an extension beyond this period only if it appears
by convincing and compelling evidence that the debtor may successfully
be rehabilitated. In no instance, however, shall the period for
or disapproving a rehabilitation plan exceed eighteen (18) months from
the date of filing of the petition.
Sec. 12. Relief
from, Modification, or Termination of Stay Order. - The court may,
on motion or motu proprio, terminate, modify, or set conditions
for the continuance of the stay order, or relieve a claim from the
thereof upon showing that (a) any of the allegations in the petition,
any of the contents of any attachment, or the verification thereof has
ceased to be true; (b) a creditor does not have adequate protection
property securing its 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.
For purposes of this
section, the creditor shall lack adequate protection if it can be shown
or refuses to honor a pre-existing agreement with the creditor to keep
the property insured;
or refuses to take commercially reasonable steps to maintain the
has depreciated to an extent that the creditor is undersecured.
Upon showing of a lack
of adequate protection, the court shall order the rehabilitation
to (a) make arrangements to provide for the insurance or maintenance of
the property, or (b) to make payments or otherwise provide additional
replacement security that the obligation is fully secured. If such
are not feasible, the court shall modify the stay order to allow the
creditor lacking adequate protection to enforce its claim against the
Provided, however, that the court may deny the creditor the remedies in
this paragraph if such remedies would prevent the continuation of the
as a going concern or otherwise prevent the approval and implementation
of a rehabilitation plan.
Sec. 13. Qualifications
of the Rehabilitation Receiver. — In the appointment of the
Receiver, the following qualifications shall be taken into
by the court:chanroblesvirtuallawlibrary
acumen to manage and operate a business similar in size and complexity
to that of the debtor;
management, finance, and rehabilitation of distressed companies;
with the rights of creditors in suspension of payments or
and general understanding of the duties and obligations of a
independence, and integrity;
e. Lack of a
of interest as defined in these Rule; and
ability to file a bond in such amount as may be determined by the court.
Without limiting the
generality of the following, a Rehabilitation Receiver may be deemed to
have a conflict of interest if:chanroblesvirtuallawlibrary
a. He is a
or stockholder of the debtor;
b. He is
in a line of business which competes with the debtor;
c. He is, or
within two (2) years from the filing of the petition, a director,
or employee of the debtor or any of its present creditors, or the
or accountant of the debtor;
d. He is, or
within two (2) years from the filing of the petition, an underwriter of
the outstanding securities of the debtor;
e. He is
by consanguinity or affinity within the fourth civil degree to any
stockholder, director, officer, employee, or underwriter of the debtor;
f. He has
direct or indirect material interest in the debtor or any creditor.
Sec. 14. Powers and
Functions of the Rehabilitation Receiver. - The Rehabilitation
shall not take over the management and control of the debtor but shall
closely oversee and monitor the operations of the debtor during the
of the proceedings, and for this purpose shall have the powers, duties
and functions of a receiver under Presidential
Decree No. 902-A, as amended, and the Rules
Receiver shall be considered as an officer of the court. He shall be
tasked to study the best way to rehabilitate the debtor and to ensure
the value of the debtor's property is reasonably maintained pending the
determination of whether or not the debtor should be rehabilitated, as
well as implement the rehabilitation plan after its approval.
he shall have the following powers and functions:chanroblesvirtuallawlibrary
accuracy of the petition, including its annexes such as the Schedule of
Debts and Liabilities and the Inventory of Assets submitted in support
of the petition;
incorporate, when justified, amendments to the Schedule of Debts and
to the court the disallowance of claims and rejection of amendments to
the Schedule of Debts and Liabilities that lack sufficient proof and
the court and make available for review by the creditors, a revised
of Debts and Liabilities;
the acts, conduct, properties, liabilities, and financial condition of
the debtor, the operation of its business and the desirability of the
thereof; and, any other matter relevant to the proceeding or to the
of a rehabilitation plan;
oath the directors and officers of the debtor and any other witnesses
he may deem appropriate;
(g) To make
to the creditors documents and notices necessary for them to follow and
participate in the proceedings;
the court any fact ascertained by him pertaining to the causes of the
problems, fraud, preferences, dispositions, encumbrances, misconduct,
and irregularities, committed by the stockholders, directors,
or any other person against the debtor;
person or persons against such as lawyers, accountants, appraisers, an
staff as are necessary in performing his functions and duties as
operations of the debtor and to immediately report to the court any
adverse change in the debtor's business;
the existing assets and liabilities, earnings and operations of the
and recommend to the court the best way to salvage and protect the
of the creditors, stockholders, and the general public;
(m) To study
rehabilitation plan proposed by the debtor or any rehabilitation plan
during the proceedings, together with any comments made thereon;
and report to the court any encumbrance, transfer, or disposition of
debtor's property outside of the ordinary course of business or what is
allowed by the court;
and report to the court any payments outside of the ordinary course of
(p) To have
access to the debtor's employees, premises, books, records, and
documents during business hours;
copy, photocopy, or photograph any document, paper, book, account, or
whether in the possession of the debtor or other persons;
(r) To gain
into any property for the purpose of inspecting, measuring, surveying,
or photographing it or any designated relevant object or operation
(s) To take
control, and custody of the debtor's assets;
and the court as to contracts that the debtor has decided to continue
perform or breach;
(u) To be
of, and to attend all meetings of the board of directors and
of the debtor;
any modification of an approved rehabilitation plan as he may deem
(w) To bring
the attention of the court any material change affecting the debtor's
to meet the obligations under the rehabilitation plan;
the appointment of a management committee in the cases provided for
Decree No. 902-A, as amended;
the termination of the proceedings and the dissolution of the debtor if
he determines that the continuance in business of such entity is no
feasible or profitable or no longer works to the best interest of the
parties-litigants, creditors, or the general public;
(z) To apply
the court for any order or directive that he may deem necessary or
to aid him in the exercise of his powers and performance of his duties
and functions; and
such other powers as may from time to time be conferred upon him by the
Sec. 15. Oath and
Bond. - Before entering upon his powers duties, and functions, the
Rehabilitation Receiver must be sworn to perform them faithfully, and
post a bond executed in favor of the debtor in such sum as the court
direct, to guarantee that he will faithfully discharge his duties and
the orders of the court. If necessary, he shall also declare under oath
that he will perform the duties of a trustee of the assets of the
will act honestly and in good faith, and deal with the assets of the
in a commercially reasonable manner.
Sec. 16. Fees
and Expenses. - The Rehabilitation Receiver and the persons hired
him shall be entitled to reasonable professional fees and reimbursement
of expenses which shall be considered as administrative expenses.
Sec. 17. Immunity
from Suit. - The Rehabilitation Receiver shall not be subject to
action, claim, or demand in connection with any act done or omitted by
him in good faith in the exercise of his functions and powers herein
Sec. 18. Reports.
- The Rehabilitation Receiver shall report every three months to the
or as often as the court may require on the general condition of the
Sec. 19. Dismissal
of Rehabilitation Receiver. - A Rehabilitation Receiver may be
by the court, upon motion or motu proprio, on account of
of interest, or on any of the grounds for removing a trustee under the
general principles of trusts.
Sec. 20. Comments
on or Opposition to the Rehabilitation Plan. - Any creditor or
party or record may file comments on or opposition to the proposed
plan, with a copy given to the Rehabilitation Receiver, not later than
one hundred twenty (120) days from the date of the initial hearing. The
court shall conduct summary and non-adversarial proceedings to receive
evidence, if necessary, in hearing the comments and opposition to the
Sec. 21. Creditors'
Meetings. - At any time before he submits his evaluation on the
plan to the court as prescribed in section 9, Rule 4 of this Rule, the
Rehabilitation Receiver may, either alone or with the debtor, meet with
the creditors or any interested party to discuss the plan with a view
clarifying or resolving any matter connected therewith.
Sec. 22. Modification
of the Proposed Rehabilitation Plan. - The debtor may modify its
plan in the light of the comments of the Rehabilitation Receiver and
or any interested party and submit a revised or substitute
plan for the final approval of the court. Such rehabilitation plan must
be submitted to the court not later than one (1) year from the date of
the initial hearing.
Sec. 23. Approval
of the Rehabilitation Plan. - The court may approve a
plan even over the opposition of creditors holding a majority of the
liabilities of the debtor if, in its judgment, the rehabilitation of
debtor is feasible and the opposition of the creditors is manifestly
or not the opposition of the creditors is manifestly unreasonable, the
court shall consider the following:chanroblesvirtuallawlibrary
a. That the
would likely provide the objecting class of creditors with compensation
greater than that which they would have received if the assets of the
were sold by a liquidator within a three-month period;
b. That the
or owners of the debtor lose at least their controlling interest as a
of the plan; and
Receiver has recommended approval of the plan.
In approving the rehabilitation
plan, the court shall issue the necessary orders or processes for its
and successful implementation. It may impose such terms, conditions, or
restrictions as the effective implementation and monitoring thereof may
reasonably require, or for the protection and preservation of the
of the creditors should the plan fail.
Sec. 24. Effects
of the Rehabilitation Plan. - The approval of the rehabilitation
by the court shall result in the following:chanroblesvirtuallawlibrary
a. The plan
its provisions shall be binding upon the debtor and all persons who may
be affected by it, including the creditors, whether or not such persons
have participated in the proceedings or opposed the plan or whether or
not their claims have been scheduled;
comply with the provisions of the plan and shall take all actions
to carry out the plan;
be made to the creditors in accordance with the provisions of the plan;
other arrangements between the debtor and its creditors shall be
as continuing to apply to the extent that they do not conflict with the
provisions of the plan; and
on amounts or rescheduling of timing of payments by the debtor shall be
binding on creditors regard less of whether or not the plan is
Sec. 25. Revocation
of the Rehabilitation Plan on Grounds of Fraud. - On motion or motu
proprio, within ninety (90) days from the approval of the
plan, and after notice and hearing, the court may revoke the approval
on the ground that the same was secured through fraud.
Sec. 26. Alteration
or Modification of the Rehabilitation Plan. - An approved
plan may, on motion, be altered or modified if, in the judgment of the
court, such alteration or modification is necessary to achieve the
targets or goals set forth therein.
Sec. 27. Termination
of Proceedings. - In case of the failure of the debtor to submit
rehabilitation plan, or the disapproval thereof by the court, or the
of the rehabilitation of the debtor because of failure to achieve the
targets or goals as set forth therein, or the failure of the said
to perform its obligations under the said plan, or a determination that
the rehabilitation plan may no longer be implemented in accordance with
its terms, conditions, restrictions, or assumptions, the court shall
motion, motu proprio, or upon the recommendation of the
Receiver, terminate the proceedings. The proceedings shall also
upon the successful implementation of the rehabilitation plan.
Sec. 28. Discharge
of the Rehabilitation Receiver. - Upon termination of the
proceedings, the Rehabilitation Receiver shall submit his final report
and accounting within such period of time as the court will allow him.
Upon approval of his report and accounting, the court shall order his
Section 1. Severability.
- If any provision or section of these Rules is held invalid, the other
provisions or sections shall not be affected thereby.
Sec. 2. Effectivity.
- These Rules shall take effect on December 15, 2000 following its
in two (2) newspapers of general circulation in the Philippines.
OF GENERAL FINANCIAL CONDITION
(1) Are you
officer of the debtor referred to in these proceedings?
(2) What is
full name and what position do you hold in the debtor?
(3) What is
full name of the debtor and what is the address of its head office?
(4) When was
formed or incorporated?
(5) When did
debtor commence business?
(6) What is
nature of its business? What is the market share of the debtor in the
in which it is engaged?
(7) Who are
parties, members, or stockholders? How many employees?
(8) What is
capital of the debtor?
(9) What is
capital contribution and what is the amount of the capital, paid and
of each of the partners or shareholders?
(10) Do any
these people hold the shares in trust for others?
(11) Who are
directors and officers of the debtors?
(12) Has the
any subsidiary corporation? If so, give particulars?
(13) Has the
properly maintained its books and are they updated?
books audited annually?
(15) If so,
is the name of the auditor and when was the last audited statement
proper returns been made to the various government agencies requiring
the debtor first become aware of its problems?
(18) Has the
within the twelve months preceding the filing of the petition:
returned any goods or delivered any property to any of its creditors,
in the normal course of business?
(19) Has the
recorded all sales or dispositions of assets?
mortgage, pledge, or security over any of its properties in favor of
or disposed of any of its properties in payment of any debt?
of, or removed any of its property except in the ordinary course of
at less than fair market value or purchased merchandise or services at
more than fair market value?
a party to any settlement of property in favor of any person?
the sales for the last three years and what percentage of the sales
the profit or mark-up?
the profits or losses for the debtor for the last three years?
the causes of the problems of the debtor? Please provide particulars?
you first notice these problems and what actions did the debtor take to
do you estimate is needed to rehabilitate the debtor?
(25) Has any
expressed interest in investing new money into the debtor?
any pending and threatened legal actions against the debtor? If so,
(27) Has the
discussed any restructuring or repayment plan with any of the
Please provide status and details.
(28) Has any
expressed interest in restructuring the debts of the debtor? If so,
wages and salaries been kept current? If not, how much are in arrears
what time period do the arrears represent?
to the government and its agencies been kept current? If not, how much
are in arrears and what time period do the arrears represent?