Ordering The Rehabilitation Of The Agrix Group Of Companies And For Other Purposes
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Ordering The Rehabilitation Of The Agrix Group Of Companies And For Other Purposes
Presidential Decree No. 1717
August 21, 1980
Case Overview and Summary
REHABILITATION OF THE AGRIX GROUP OF COMPANIES- Agrix Marketing, Inc. and its subsidiaries induced public to invest with excessive interest rates through illegal schemes (Section 1)
- Agrix Group defaulted on payments due to financial deterioration (Section 1)
- SEC found the high interest investment contracts to be illegal (Section 1)
- Consolidation of Agrix Group assets/liabilities into New Agrix, Inc. approved for rehabilitation (Section 1)
- New Agrix, Inc. to be incorporated with authorized capital stock of P200 million (Section 2)
- Paid-up capital is sum of valid principal claims of investors, excluding criminal cases (Section 2)
- Claims Committee to determine validity of claims and issue stock equivalents (Section 3)
- Secured obligations at 12% interest payable over 5 years, unsecured over 10 years (Section 4)
- NDC to provide interest-free rehabilitation loan up to P10 million (Section 5)
- New Agrix, Inc. exempted from taxes for 5 years (Section 6)
- NDC to manage New Agrix, Inc. until loan repaid, then BoD to appoint management (Section 7)
- NDC exempted from liability for acts/omissions in implementation (Section 8)
- Pending claims against dissolved corporations dismissed (Section 9)
- SEC and agencies to assist in implementation (Section 10)
- Effective 90 days from date or upon DOJ certification of criminal charges (Section 11)
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Executive Issuances
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Agrix Group
Rehabilitation
New Agrix, Inc.
Securities and Exchange Commission
National Development Company
Investment schemes
Illegal devices
Default on payments
Consolidation of assets and liabilities
Authorized capital stock
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Claims Committee
Secured obligations
Unsecured obligations
Interest-free loan
Tax exemption
Management
Liability exemption
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Ordering The Rehabilitation Of The Agrix Group Of Companies And For Other Purposes
Presidential Decree No. 1717
•August 21, 1980
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1717
ORDERING THE REHABILITATION OF THE AGRIX GROUP OF COMPANIES AND FOR OTHER PURPOSES
WHEREAS, Agrix Marketing, Inc. and its subsidiary and affiliate corporations had induced the public to invest funds upon the promise of excessive rates of interest under schemes the Securities and Exchange Commission has declared to be illegal devices;
WHEREAS, Agrix Marketing, Inc. and its subsidiary and affiliate corporations have defaulted on the payment of the promised yields including the principal, as a result of the deterioration of their financial position;
WHEREAS, pursuant to its power under PD 902-A, the Securities and Exchange Commissions found that these high interest-yielding investment contracts were illegal devices or schemes amounting to misrepresentations which are detrimental to the interest of the public particularly the small investors;
WHEREAS, after study and evaluation of the existing assets and liabilities, earnings and operations of the Agrix Group of corporations, it has been determined that the best way to salvage and protect the interests of its investors and creditors is to...
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