Practice question
A plan complies with FRIA, is recommended by the receiver and would likely pay an objecting class more in present value than liquidation. But the juridical debtor's existing owners retain their controlling interest unchanged. They argue that three favorable findings necessarily authorize Section 64 override. Which is correct?
- Any three conditions suffice
- Section 64 also requires the owners to lose at least their controlling interest; that condition is missing
- The creditor class may be ignored without any findings
- Control never matters under the section
- The court must award the owners all creditor assets
Legal references
- RA 10142, Section 64: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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