Republic of the Philippines

REGIONAL TRIAL COURT

In re: Petition for rehabilitation

ABC Corporation,
Petitioner, Civil Case No. 12122
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PETITION FOR CORPORATE REHABILITATION

PETITIONER, by counsel and to this Honorable Court, respectfully alleges that:

1. Petitioner is a corporation duly organized and existing under and by virtue of the
Philippines, with principal office at No. 34, X Building, Ayala Avenue, Makati City, where
it may be served with legal processes.
2. Petitioner is engaged in wholesale and retail of all kinds of goods, merchandise, furniture
and fixtures, household machineries, clothing shoes and the like, with branches in Metro
Manila.
3. Sometime in September 2014, petitioner suffered losses due primarily to high post of
goods, smuggling, and stiff competition from other business organizations engaged in
the same line of business, such that the stockholders had to infuse additional capital of
P10, 000,000.00 to keep the company a going concern.
4. While the corporation has enough properties consisting of its building where it holds its
main offices and four (4) smaller buildings in Metro Manila, where its stores are located,
petitioner has suffered liquidity problems starting the third quarter of the year 2014, such
that it had to retrench 20 salesladies. Such liquidity problem has persisted that it finds
difficulties paying on time the salaries of its employees and it could not pay maturing
obligations.
5. As of January 2015, petitioner’s financial records show that its properties approximately
valued at P50,000,000.0 and obligations of about P40,000,000.00, which are mostly
maturing and petitioner would be unable to pay them when they become due as it still
suffers liquidity problems because its properties.
6. The list of petitioner’s creditors is as follows, opposite of which is the amount of their
claims against petitioner.
(List of creditors)
7. Some creditors also have threatened to sue petitioner for collection of money owned
them.
8. Petitioner submits that it can still be rehabilitated, by suspending payment of all its
obligations during the period of rehabilitation, and by the present stockholders increasing
their capital contributions to at least P25, 000,000.00 and inviting outside capital of
 equivalent amount, which plan has been approved by the board of directors of petitioner
and has authorized its President, Jose de la Cruz, to file the petition for rehabilitation.
The stockholders likewise approved the rehabilitation of the corporation and have
adopted, in their special stockholders’ meeting held on January 10, 2015, the
rehabilitation plan. Copies of the board resolution and the stockholders’ resolution,
approving said plan, are attached hereto as Annexes “A” and “B,” respectively.
9. A rehabilitation plan has been prepared in detail bu experts and by the officers of the
petitioner, showing how the corporation may be rehabilitated and how much
rehabilitation may benefit the creditors, employees and stockholders, and when profit
may be earned and creditors would be paid their claims, which rehabilitation plan is
attached hereto as Annex “C”.
10. In addition, attached hereto, in support of the petition, are the following documents:
a. An audited financial statement of the debtor at the end of its last fiscal year;
b. Interim financial statements as of the end of the month prior to the filing of the
petition;
c. Schedule of Debts 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 principal,
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;
d. An inventory of Assets which much list with reasonable specificity all the assets of
the debtor, stating the nature of each asset, the location and condition thereof, the
book value or market value of the asset, and attaching the corresponding certificate
of title therefor in case of real property, or the evidence of title or ownership in case
of movable property, the encumbrances, liens or claims thereon, if any, and the
identities and addresses of the lienholders and claimants. The Inventory shall include
a Schedule of Accounts Receivable which must indicate the amount of each, the
persons from whom due, the date of maturity, and the degree of collectability
categorizing them as highly collectible to remotely collectible;
e. A Schedule of Payments and disposition of assets which the debtor may have
effected within three (3) months immediately preceding the filing of the petition;
f. A schedule of the Cash Flow of the debtor for three (3) months immediately
preceding the filing of the petition, and a detailed schedule of the projected cash flow
for the succeeding three (3) months;
g. A Statement of Possible Claims by or against the debtor which must contain a brief
statement of the facts which might give rise to the claim and an estimate of the
probable amount thereof;
h. An Affidavit of General Financial Condition;
i. At least three (3) nominees for the position of Rehabilitation Receiver as well as their
qualifications and addresses, including but not limited to their telephone numbers,
fax number and e-mail address and
j. A certificate attesting, under oath, that (a) the filing of the petition has been duly
authorized; (b) the directors and stockholders have irrevocably approved and/or
consented to, in accordance with existing laws, all actions or matters necessary and
desirable to rehabilitate the debtor including, but not limited to, amendments to the
 articles of incorporation and by-laws or articles of partnership; increase or decrease
in the authorized capital stock; issuance of bonded indebtedness; alienation,
transfer, or encumbrance of assets of the debtor; and modification of the
shareholders’ rights.

WHEREFORE, petitioner prays that after due notice and hearing;

1. The rehabilitation plan, a copy of which is attached hereto as Annex “C,”, be

City of Makati, Philippines, January 20, 2015.

VERIFICATION

“I, Jose de la Cruz, President of petitioner ABCX Corporation, do solemnly swear that:

1. Petitioner has been duly authorized to file the petition and that the stockholders and
board of directors have approved and/or consented to, in accordance with law, all
actions or matters necessary or desirable to rehabilitate the debtor;
2. There is no petition for insolvency filed with any other body, court, or tribunal affecting
the petitioner;
3. The Inventory of Assets and the Schedule of Debts and Liabilities contains a full, correct,
and true description of all debts and liabilities and of all goods, effects, estate, and
property of whatever kind or class belonging to petitioner;
4. 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 all of all securities and
contracts whereby any money may hereafter become due or payable to petitioner or by
or through which any benefit or advantage may accrue to petitioner;
5. The petition contains a concise statement of the facts giving rise, or which might give
rise, to any cause of action in favor of petitioner;
6. Petitioner has no land, money, stock, expectancy or property of any kind, except those
set forth in the Inventory of Assets;
7. Petitioner, has, in no instance, created or acknowledged a debt for a greater sum than
the true and correct amount;
8. Petitioner, its officers, directors, and stockholders have not, directly or indirectly,
concealed, fraudulently sold, or otherwise fraudulently disposed of, any part of
petitioner’s real or personal property, estate, effects, or rights of action, and petitioner, its
officers directors, and stockholders have not in any way compounded with any of its
creditors in order to give preference to such creditors, or to receive or to accepts any
profit or creditor to whom petitioner is indebted; and
9. Petitioner, its officers, directors, and stockholders have been acting in good faith and
with die diligence.

Executed this 20th day of January 2015 at Makati City, Philippines.

(Sgd.) JOSE DE LA CRUZ

JURAT