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Difference Between Rehabilitation and Liquidation

Rehabilitation refers to restoring a debtor company to solvency and successful operations through a plan that allows creditors to recover more value than through immediate liquidation. Rehabilitation aims to continue the corporate entity, while liquidation settles debts and winds down operations. The twofold purpose of corporate rehabilitation is to restore the company and provide equitable treatment of all creditors.

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47 views1 page

Difference Between Rehabilitation and Liquidation

Rehabilitation refers to restoring a debtor company to solvency and successful operations through a plan that allows creditors to recover more value than through immediate liquidation. Rehabilitation aims to continue the corporate entity, while liquidation settles debts and winds down operations. The twofold purpose of corporate rehabilitation is to restore the company and provide equitable treatment of all creditors.

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We take content rights seriously. If you suspect this is your content, claim it here.
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FRIA

1. DEFINE REHABILITATION

Rehabilitation refers to the restoration of the debtor to a condition of successful


operation and solvency, if it is shown that its continuance of operation is
economically feasible and its creditors can recover by way of the present value
of payments projected in the plan, more if the debtor continues as a going
concern than if it is immediately liquidated.

2. EXPLAIN NATURE REHABILITAITON/LIQUIDATION/SUSPENSION

Difference between Rehabilitation and Liquidation

Rehabilitation connotes reopening or reorganization. Aim is to restore


corporation to its successful operation and continue corporate life
Liquidation connotes winding up or settling with creditors and debtors.

3. 2 FOLD PURPOSE CORPORATE REHABILITATION

4. DOCTRINE EQUALITY IN EQUITY - ALL CREDITORS STAND ON EQUAL FOOTING; NO


PREFERENCE

5. DISTINGUISH LIQUID V REHAB. CAN YOU FILE REHAB AFTER LIQUID? VICE VERSA?

6. EXC TO STAY ORDER

7. HOW TO CONVERT REHAB PROCEEDINGS TO LIQUID

8. COURT SUPERVISED REHAB VOTING REQ

9. PRE NEGOTIATED REHAB VOTING REQ

10. OUT OF COURT REHAB VOTING REQ

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