Subject: Draft
Financial Rehabilitation Rules of Procedure (2012)
References to Rules and Sections are based on the matrix prepared by the
Sub-Committee on Commercial Courts.
Section
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Comments
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Rule 1
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1
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Note
the year.
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2
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It
would be very helpful if the Rules cover the entire FRIA, and not just
rehabilitation, specially since there are several instances when the FRIA
allows conversion of proceedings.
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3
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Is
there an intention to make the Judicial Affidavit Rule apply to these
proceedings?
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5
(c)
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Why
is it necessary for the value of an Asset to appear in the last 3 annual
audited financial statements? Is
it the intention to exclude newly acquired assets?
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5
(i)
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Revise
to read – “Insolvency shall refer to the financial condition of a debtor that
is generally unable to pay its liabilities as these fall due in the ordinary
course of business, or whenever its liabilities are greater than its assets.”
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5
(j)
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Revise to
read – “Liquidation shall refer to the judicial insolvency proceedings under Chapter V of the Act by which
the assets of an insolvent debtor are recovered and their value preserved and
maximized for the purpose of converting the same into
money, and discharging, to the extent possible, all the claims against the
insolvent debtor.”
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