REPUBLIC ACT No.

10142 AN ACT PROVIDING FOR THE REHABILITATION OR LIQUIDATION OF FINANCIALLY DISTRESSED ENTERPRISES AND INDIVIDUALS OUTLINE By Exch !"#$ F%&!#"o ' ( )%& y I. GENERAL PROVISIONS a. Declaration of Policy Sec. 2 b. Nature of Proceeding Sec. ! c. "o#erage d. De ignation of "ourt and Pro$ulgation of Procedural Rule Sec.% e. Sub tanti#e and Procedural "on olidation Sec. & f. Liability of Indi#idual Debtor' O(ner of a Sole Pro)rietor *i)' Partner in a Partner *i)' or Director and Officer Sec. +, g. Aut*ori-ation to E.c*ange Debt for E/uity Sec. ++

II.

"O0R12S0PERVISED RE3A4ILI1A1ION a. Initiation of Proceeding i. Voluntary Proceeding +. 3o( initiated Sec. +2 2. Ground !. "ontent of Petition Sec. +2 ii. In#oluntary Proceeding . +. 3o( initiated Sec. +!5 2. "ircu$ tance Nece ary to Initiate In#oluntary Proceeding Sec. +! !. "ontent of Petition Sec. +6 b. Action on t*e Petition and "o$$ence$ent of Proceeding . i. Action on t*e Petition. Sec. +7 ii. "o$$ence$ent of Proceeding and I uance of a "o$$ence$ent Order Sec. +% iii. Effect of t*e "o$$ence$ent Order Sec. +&

i#. E.ce)tion to t*e Stay or Su )en ion Order Sec. +85 1*e Stay or Su )en ion Order #. 9ai#er of ta.e and :ee Due to t*e National Go#ern$ent and to Local Go#ern$ent 0nit ;LG0 < Sec. += #i. A))lication of Stay or Su )en ion Order to Go#ern$ent :inancial In titution . Sec. 2, #ii. Effecti#ity and Duration of "o$$ence$ent Order Sec. 2+ #iii. Action at t*e Initial 3earing Sec. 22 i.. Effect of :ailure to :ile Notice of "lai$ Sec. 2! .. Re)ort of t*e Re*abilitation Recei#er Sec. 26 .i. Gi#ing Due "our e to or Di $i al of Petition' or "on#er ion of Proceeding Sec. 27 .ii. Petition Gi#en Due "our e Sec. 2% .iii. Di $i al of Petition Sec. 2& c. 1*e Re*abilitation Recei#er' >anage$ent "o$$ittee and "reditor ? "o$$ittee i. Re*abilitation Recei#er +. 9*o >ay Ser#e Sec. 28 2. @ualification Sec. 2=5 !. Po(er ' Dutie and Re )on ibilitie Sec. !+ 6. Re$o#al Sec. !2 7. "o$)en ation and 1er$ of Ser#ice Sec. !! %. Oat* and 4ond of t*e Re*abilitation Recei#er Sec. !6 &. Vacancy Sec. !75 court *all direct t*e debtor and t*e creditor 8. Di )lace$ent of E.i ting >anage$ent by t*e Re*abilitation Recei#er or >anage$ent "o$$ittee Sec. !% ii. >anage$ent "o$$ittee +. Role of t*e >anage$ent "o$$ittee. Sec. !&5 9*en a))ointed 2. @ualification of >e$ber of t*e >anage$ent "o$$ittee. Sec. !8 iii. "o$$on Pro#i ion +. E$)loy$ent of Profe ional Sec. != 2. "onflict of Intere t Sec. 6,

!. I$$unity Sec. 6+ i#. "reditor A "o$$ittee +. "on titution Sec. 62 2. Role Sec. 6! d. Deter$ination of "lai$ i. Definition of "lai$ Sec. 6;c< ii. Regi try of "lai$ Sec. 66 iii. O))o ition or "*allenge of "lai$ Sec. 67 i#. A))eal Sec. 6% e. Go#ernance i. >anage$ent Sec. 6& f. 0 e' Pre er#ation and Di )o al of A et and 1reat$ent of A et and "lai$ after "o$$ence$ent Date. i. 0 e or Di )o ition of A et Sec. 68 ii. Sale of A et Sec. 6= iii. Sale or Di )o al of Encu$bered Pro)erty of t*e Debtor and A et of 1*ird Partie 3eld by Debtor Sec. 7, i#. A et of Debtor 3eld by 1*ird Partie Sec. 7+ #. Re ci ion or Nullity of Sale' Pay$ent' 1ran fer or "on#eyance of A et Sec. 72 #i. A et SubBect to Ra)id Ob ole cence' De)reciation and Di$inution of Value. Sec. 7! #ii. Po t2co$$ence$ent Intere t Sec. 76 #iii. Po t2co$$ence$ent Loan and Obligation Sec. 7727& g. A#oidance Proceeding i. Re ci ion or Nullity of "ertain Pre2co$$ence$ent 1ran action Sec. 78 ii. Action for Re ci ion or Nullity Sec. 7= *. 1reat$ent of Secured "reditor i. No Di$inution of Secured "reditor Rig*t Sec. %, ii. LacC of Ade/uate Protection Sec. %+ i. Ad$ini tration of Proceeding .

i. "ontent of a Re*abilitation Plan Sec. %2 ii. "on ultation (it* Debtor and "reditor Sec. %! iii. "reditor A))ro#al of Re*abilitation Plan Sec. %6 i#. Sub$i ion of Re*abilitation Plan to t*e "ourt. Sec. %7 #. :iling of ObBection to Re*abilitation Plan Sec. %% #i. 3earing on t*e ObBection Sec. %& #ii. "onfir$ation of t*e Re*abilitation Plan Sec. %8 #iii. Effect of "onfir$ation of t*e Re*abilitation Plan Sec. %= i.. Liability of General Partner of a Partner *i) for 0n)aid 4alance 0nder an A))ro#ed Plan Sec. &, .. 1reat$ent of A$ount of Indebtedne Sec. &+ or Obligation :orgi#en or Reduced

.i. Period for "onfir$ation of t*e Re*abilitation Plan Sec. &2 .ii. Accounting Di c*arge of Re*abilitation Recei#er Sec. &! B. 1er$ination of Proceeding i. 1er$ination of Proceeding Sec. &6 ii. Action of "ourt u)on 1er$ination Sec. &6 iii. Effect of 1er$ination Sec. &7 III. PRE2NEGO1IA1ED RE3A4ILI1A1ION a. Initiation of Proceeding Sec. &% i. 9*o >ay Initiate ii. "ontent of Petition b. I uance of Order Sec. && c. A))ro#al of t*e Plan Sec. &8 d. ObBection to t*e Petition or Re*abilitation Plan Sec. &= e. 3earing on t*e ObBection Sec. 8, f. Period for A))ro#al of Re*abilitation Plan Sec. 8+ g. Effect of A))ro#al Sec. 82 IV. O012O:2"O0R1 OR IN:OR>AL RE3A4ILI1A1ION PLANS RES1R0"10RING AGREE>EN1S OR

a. Out2of2"ourt or Infor$al Re tructuring Agree$ent and Re*abilitation Plan D >ini$u$ Re/uire$ent Sec. 8! and 86 b. Stand till Period Sec. 87 c. "ra$ Do(n Effect Sec. 8% d. A$end$ent or >odification Sec. 8&28= V. LI@0IDA1ION O: INSOLVEN1 E0RIDI"AL DE41ORS a. Voluntary Li/uidation Sec. =, i. Petition for Li/uidation ii. >otion for Li/uidation iii. Action on Petition or >otion b. In#oluntary Li/uidation Sec. =+ i. Petition for Li/uidation ii. >otion for Li/uidation iii. Action on Petition and >otion c. "on#er ion by t*e "ourt into Li/uidation Proceeding Sec. =25 d. Po(er of t*e SE" Sec. =!5 1*e )ro#i ion of t*i c*a)ter *all not affect t*e VI. INSOLVEN"F O: INDIVID0AL DE41ORS a. Su )en ion of Pay$ent . i. Petition Sec. =6 ii. Action on t*e Petition Sec. =7 iii. Action Su )ended Sec. =% i#. "reditor A >eeting Sec. =& #. Per on 9*o >ay Refrain :ro$ Voting Sec. =8 #i. ReBection of t*e Pro)o ed Agree$ent Sec. == #ii. ObBection Sec. +,, #iii. Effect of A))ro#al of Pro)o ed Agree$ent Sec. +,+5 i.. :ailure of Indi#idual Debtor to Perfor$ Agree$ent Sec. +,2 b. Voluntary Li/uidation. i. Petition Sec. +,! ii. Li/uidation Order Sec. +,6

c. In#oluntary Li/uidation. i. Petition Sec. +,72+,& ii. Ab ent Indi#idual Debtor Sec. +,8 iii. All Pro)erty 1aCen to be 3eld for All "reditor D A))eal 4ond D E.e$)tion to Suretie Sec. +,= i#. Sale 0nder E.ecution Sec. ++, VII. PROVISIONS "O>>ON 1O LI@0IDA1ION IN INSOLVEN"F a. 1*e Li/uidation Order. i. "ontent of Li/uidation Order Sec. ++2 ii. Effect of t*e Li/uidation Order Sec. ++! iii. Rig*t of Secured "reditor Sec. ++6 b. 1*e Li/uidator. i. Election of Li/uidator Sec. ++7 ii. "ourt2A))ointed Li/uidator Sec. ++% iii. Oat* and 4ond of t*e Li/uidator Sec. ++& i#. @ualification of t*e Li/uidator Sec. ++8 #. Po(er ' Dutie and Re )on ibilitie of t*e Li/uidator Sec. ++= #i. "o$)en ation of t*e Li/uidator Sec. +2, #ii. Re)orting Re/uire$ent Sec. +2+ #iii. Di c*arge of Li/uidator Sec. +22 c. Deter$ination of "lai$ i. Regi try of "lai$ Sec. +2! ii. Rig*t of Set2off Sec. +26 iii. O))o ition or "*allenge to "lai$ Sec. +27 i#. Sub$i ion of Di )uted "lai$ to t*e "ourt Sec. +2% d. A#oidance Proceeding i. Re ci ion or Nullity of "ertain 1ran action Sec. +2& ii. Action for Re ci ion or Nullity Sec. +28 e. 1*e Li/uidation Plan i. 1*e Li/uidation Plan Sec. +2=

ii. E.e$)t Pro)erty to be Set A)art Sec. +!, iii. Sale of A et in Li/uidation Sec. +!+2+!! i#. Order Re$o#ing t*e Debtor fro$ t*e Li t of Regi tered Entitle at t*e Securitie and E.c*ange "o$$i ion Sec. +!6 #. 1er$ination of Proceeding Sec. +!7 f. Li/uidation of a Securitie >arCet Partici)ant Sec. +!% VIII. PRO"EEDINGS AN"ILLARF 1O O13ER INSOLVEN"F OR RE3A4ILI1AION PRO"EEDINGS a. 4anC and Ot*er :inancial In titution 0nder Re*abilitation Recei#er *i) Pur uant to a State2funded or State2$andated In urance Sy te$ i. Pro#i ion of A i tance Sec. +!& ii. A))lication of Rele#ant Legi lation Sec. +!8 b. "ro 24order In ol#ency Proceeding i. Ado)tion of 0ncitral >odel La( on "ro 24order In ol#ency Sec. +!= ii. Initiation of Proceeding Sec. +6, iii. Pro#i ion of Relief Sec. +6+ i#. :actor in Granting Relief Sec. +62

IG. :0NDS :OR RE3A4ILI1A1ION O: GOVERN>EN12O9NED AND "ON1ROLLED "ORPORA1IONS Sec. +6! G. >IS"ELLANEO0S PROVISIONS a. A))licability of Pro#i ion Sec. +66 b. Penaltie Sec. +67 c. A))lication to Pending In ol#ency' Su )en ion of Pay$ent and Re*abilitation "a e Sec. +6% d. A))lication to Pending "ontract Sec. +6& e. Se)arability "lau e Sec. +6= f. Effecti#ity "lau e Sec. +7,