Surety not covered by stay order under corporate rehabilitation
Banco de Oro-EPCI, Inc. v. JAPRL Development Corporation (G.R.No. 179901 April 14, 2008, 551 SCRA 342) holds that a creditor can demand payment from the surety solidarity liable with the corporation seeking rehabilitation, it being not included in the list of stayed claims.
Indeed, Section 6(b) of the Interim Rules of Procedure of Corporate Rehabilitation provides that a stay order does not apply to sureties who are solidarity liable with the debtor.
Indeed, Section 6(b) of the Interim Rules of Procedure of Corporate Rehabilitation provides that a stay order does not apply to sureties who are solidarity liable with the debtor.
Sureties, whose liability is solidary cannot, therefore, claim protection from the rehabilitation court, they not being the financially-distressed corporation that may be restored, not to mention that the rehabilitation court has no jurisdiction over them. Article 1216 of the Civil Code clearly is not on their side:
ART. 1216. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. The demand made against any one of them shall not be an obstacle to those which may subsequently be directed against the others, so long as the debt has not been fully collected.
