Court places Hanjin Phils. under corporate rehab

Published January 14, 2019, 8:29 PM

by Roel Tibay

By Jonas Reyes

SUBIC BAY FREEPORT – An Olongapo City Regional Trial Court has placed Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) under corporate rehabilitation after the company sought relief from the Philippine government due to financial losses that stemmed from the shipbuilding slump.

Hon. Judge Richard A. Paradeza of Branch 72 gave Hanjin the commencement order on January 14 pursuant to Republic Act No. 10142 or the Financial Rehabilitation and Insolvency Act of 2010 (FRIA).

The court declared Hanjin Philippines under rehabilitation and ordered the company to publish the commencement order in a newspaper of general circulation for two consecutive weeks.

The court also ordered the company to serve a copy of the petition to its creditors, Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC), Banko Sentral ng Pilipinas (BSP), Insurance Commission, Department of Labor and Employment (DOLE), Housing and Land Use Regulatory Board (HLURB), Department of Trade and Industry (DTI), and the Subic Bay Metropolitan Authority (SBMA).

The court also ordered the company to serve a copy of the commencement order to its foreign creditors and ensure that its foreign creditors receive a copy within 15 days before the initial hearing on February 8.

The court also ordered the creditors to file verified claims within five days before February 8. If the creditor files a belated claim, the creditor will not be entitled to participate in the proceedings but shall be entitled to receive distributions arising therefrom, if recommended and approved by the rehabilitation receiver and the court itself.

The court appointed Stefani Saño as the rehabilitation receiver.

The court also ordered creditors, government agencies aforementioned, and all interested parties to file and serve to Hanjin a verified comment/opposition to the petition, together with their supporting affidavits and documents within 15 days before the initial hearing on February 8.

The court also prohibits the company’s supplier of goods and services from withholding their supplies and services in the ordinary course of business for as long as Hanjin makes payment for the said goods and services from the issuance of the commencement order.

The court also authorizes the company to pay for its administrative expenses as they become due.

The court also orders that all contracts not confirmed in writing by HHIC-Phil within 90 days following issuance of the commencement order will be considered terminated.

The once 30,000-strong workforce is now pegged at more than 3,000 employees that are still working at their Redondo Peninsula shipbuilding facility in Subic Bay Freeport Zone.

 
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