Approval of Rehab Plan
COURT SUPERVISED
PRE-NEGOTIATED
Required votes
for approval of
the rehab plan
Must be approved by:
a. All classes of creditors whose right are
adversely modified or affected by the
Plan
b. The Plan is deemed to have been
approved by a class of creditors if
members of the said class holding more
than fifty percent (5O%) of the total
claims of the said class vote in favor of
the Plan.
Must be approved by:
creditors holding at least two-thirds (2/3) of
the total liabilities of the debtor, including
a. secured creditors holding more than
fifty percent (50%) of the total secured
claims of the debtor and
b. unsecured creditors holding more
than fifty percent (50%) of the total
unsecured claims of the debtor.
Period
for
confirmation
Section 72. The court shall have a
maximum period of one (1) year from
the date of the filing of the petition to
confirm a Rehabilitation Plan.
Section 81. Period for Approval of
Rehabilitation Plan. — The court shall
have a maximum period of one hundred
twenty (120) days from the date of the
filing of the petition to approve the
Rehabilitation Plan.
If no Rehabilitation Plan is confirmed
within the said period, the proceedings y
upon motion or motu proprio, be
converted into one for the liquidation of
the debtor.
If the court fails to act within the said
period, the Rehabilitation Plan shall be
deemed approved.