Harmonizing creditor-debtor interests in the exercise of corporation rehabilitation remedies

• Main Author: Gomez, Michael G.R.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4314
• Institution: De La Salle University

There is an undeniable reality that the relationship between creditors and debtors is a relationship that requires utmost attention in law. As these two parties naturally have opposing views and interests which each seeks to protect, the law should act as a balancing factor which not only mediates between them, but also equitably tempers any disparities in treatment between both the creditors and debtors. This thesis presents the conjecture that, due to the important role this special relationship plays in society as a whole, efforts should be made in order to truly create a harmonious relationship between the creditor and debtor. With this, the thesis began with the proposition that prevailing laws on the remedies provided to corporate debtors tend to have an adverse effect on corporate creditors. As such, the law should be modified to create a more harmonious business relationship between debtors and creditors and to balance the legal remedies available to either party. In line with this, the legal remedies of the debtor, specifically those provided for by Presidential Decree 902-A and the Interim Rules of Procedure on Corporate Rehabilitation were analyzed in the light of existing industry practices as well as documented commentaries on the subject. With this, the proponent of the thesis arrived at the conclusion that existing laws on debtor remedies provided by the above mentioned laws do not truly provide for an imbalance in the relationship between the creditors and debtors. However, in the course of the thesis, it was found that problems arise not from the laws but from the actual implementation of such. Hence, the thesis also provides for recommendations to pertinent agencies and entities in order to properly address these problems.