FRIA

As provided in Section 1, Chapter 1 of Republic Act No.10142, the Act shall be known as the

• FINANCIAL REHABILITATION ACT OF 2009

• FINANCIAL REHABILITATION AND INSOLVENCY ACTOF 2010

• FINANCIAL LIQUIDATION AND INSOLVENCY ACT OF2009

• FINANCIAL LIQUIDATION OF ENTERPRISES ANDINDIVIDUAL ACT OF 2010

Which of the following is not covered by FRIA?

• Metrobank

• ABC Corporation

• Mang Peping and Mang Toti Inc.

• Rex Beybe Co.

Answer explanation

FRIA does not cover banks, insurance companies, pre-need companies, national and local government agencies

Which of the following is correct?

• In a rehabilitation of individual debtor, the debtor is insolvent and the aggregate liability is at least five hundred thousand

• In suspension of payment of individual debtor, the debtor is insolvent and the aggregate liability is at least one million

  pesos

• In a rehabilitation of individual debtor, the debtor is solvent and the aggregate liability is at least five hundred thousand

• In a suspension of payment of individual debtor, the debtor is solvent and there is no minimum liability requirement.

Answer explanation

> correct. suspension of payment is available to an individual debtor who possesses sufficient property to cover his debt but foreseeing the impossibility of meeting them when they fall due

>Note: para maavail ang rehabilitation plan, dapat solvent ang debtor.

pag insolvent ang debtor subject siya sa liquidation na.

The following are effects of stay order or suspension order, except?

• Suspend all actions or proceedings in court for the enforcement of claims against the debtor

• Suspend all action to enforce any judgment, attachment or any provisional remedies against the debtor

• Prohibit the debtor from selling, encumbering, transferring or disposing in any manner any of its properties, except in the ordinary course of business

• Prohibit the debtor from selling, encumbering, transferring or disposing in any manner any of its properties even in the Ordinary course of business

Answer explanation

prohibit the debtor from making any payment of its liabilities outstanding as of the commencement date except as may be provided therein

In liquidation of individual debtor, which of the following is correct?

• The creditor has to pay bond in case of voluntary liquidation

• The debtor has to pay bond in case of voluntary liquidation

• The liquidation order shall be issued after trial in case of voluntary liquidation

• The liquidation order shall be issued even without trial in case of voluntary liquidation

This period that may be agreed upon by the parties pending negotiation and finalization of the out-court or informal restructuring/workout agreement Rehabilitation Plan?

• Stand still period

• Status quo period

• Pre-negotiation period

• Cram down period

How much is the minimum amount of debt for the court to grant involuntary liquidation of an insolvent corporation?

• 400,000

• 500,000 or 25% of subscribed capital stock whichever is Higher

• 1,000,000 or 25% of subscribed capital stock whichever is higher

• none

the rehabilitation as opposed to suspension of payment?

• 500k is the minimum amount of debt

• applicable to both juridical person and insolvent debtor

• the asset of the debtor is than the liabilities

• the asset of the debtor is greater than the liabilities

Answer explanation

rehabilitation - general is that the debtor is INSOLVENT.

suspension of payment - solvent (may kakahayan naman magbayad si debtor) kaso hindi niya kaya mabayadan mga creditors kapag due date na ng bayaran ng mga utang.

S1: Rehabilitation plan shall be confirmed by the court after approval of the insolvent debtor but not without approval or over the objection of all creditors

S2: Liquidator shall refer to the natural person or juridical entity appointed as such by the court pursuant to these rules and entrusted with such powers and duties

• True; False

• False, True

• True, True

• False, False

Answer explanation

S1: dapat may approval pa din ng creditor yung rehabilitation plan.

>sa creditors muna bago idulog sa court kung nasatisfy na yung rehabilitation

A person not contended with the actions of the rehabilitation, the receiver may sue him in court other than the one where the petition for rehabilitation is pending.

• true

• false

• maybe

• pwede na

Answer explanation

false. mag aapply yung CRAM DOWN rule, even without the approval of the creditors, laging "court" ang may final say