This case has been cited 2 times or more.
|
2015-11-09 |
JARDELEZA, J. |
||||
| In Town and Country Enterprises, Inc. v. Qinsumbing, Jr.,[58] which presents the same set of facts with this case, we held:Considering that Metrobank acquired ownership over the mortgaged properties upon the expiration of the redemption period on 6 February 2002, TCEI is also out on a limb in invoking the Stay Order issued by the Rehabilitation Court on 8 October 2002 and the approval of its rehabilitation plan on 29 March 2004. An essential function of corporate rehabilitation is, admittedly, the Stay Order which is a mechanism of suspension of all actions and claims against the distressed corporation upon the disÂappointment of a management committee or rehabilitation receiver. The Stay Order issued by the Rehabilitation Court in SMC Case No. 023-02 cannot, however, apply to the mortgage obligations owing to Metrobank which had already been enforced even before TCEI's filing of its petition for corporate rehabilitation on 1 October 2002. | |||||
|
2015-03-25 |
PERLAS-BERNABE, J. |
||||
| Restoration is the central idea behind the remedy of corporate rehabilitation. In common parlance, to "restore" means "to bring back to or put back into a former or original state."[42] Case law explains that corporate rehabilitation contemplates a continuance of corporate life and activities in an effort to restore and reinstate the corporation to its former position of successful operation and solvency, the purpose being to enable the company to gain a new lease on life and allow its creditors to be paid their claims out of its earnings.[43] Consistent therewith is the term's statutory definition under Republic Act No. 10142,[44] otherwise known as the "Financial Rehabilitation and Insolvency Act of 2010" (FRIA), which provides: Section 4. Definition of Terms. As used in this Act, the term: | |||||