Practice question
A rehabilitation proposal predicts recovery greater than immediate liquidation only by adding undiscounted payments expected decades later. It supplies no credible financial assumptions and ignores present value. The receiver says any large nominal total proves viability. Which is best?
- Nominal totals alone always prove rehabilitation
- The statutory inquiry requires economically feasible continuation and the relevant present-value comparison, not unsupported nominal sums
- A plan never needs financial information
- Every creditor must accept the debtor's optimism
- Long delay automatically increases current value
Legal references
- RA 10142, Section 4(gg) and Section 62: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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