Affidavit of General Financial Condition in Court-Supervised Rehabilitation

The Affidavit of General Financial Condition is attached to the petition for court-supervised rehabilitation. The affidavit must contain the answers to the following questions:

Affidavit of General Financial Condition in Court-Supervised Rehabilitation Proceedings under FRIA

1. Are you an officer of the debtor referred to in these proceedings?

2. What is your full name and what position do you hold in the debtor?

3. What is the full name of the debtor and what is the address of its head office?

4. When was it formed or incorporated?

5. When did the debtor commence business?

6. What is the nature of its business? What is the market share of the debtor in the industry in which it is engaged?

7. Who are the parties, members, or stockholders? How many employees?

8. What is the capital of the debtor?

9. What is the capital contribution and what is the amount of the capital, paid and unpaid, of each of the partners or shareholders?

10. Do any of these people hold the shares in trust for others?

11. Who are the directors and officers of the debtors?

12. Does the debtor have any subsidiary corporation? If so, give particulars?

13. Has the debtor properly maintained its books and are they updated? 

14. Were the books audited annually?

15. If so, what is the name of the auditor and when was the last audited statement drawn up?

16. Were all the proper returns made to the various government agencies which required them?

17. When did the debtor first become aware of its problems?

18. Has the debtor, within the twelve months preceding the filing of the petition:

  • (i) made any payments, returned any goods or delivered any property to any of its creditors, except in the normal course of business?
  • (ii) executed any mortgage, pledge, or security over any of its properties in favor of any creditor?
  • (iii) transferred or disposed of any of its properties in payment of any debt?
  • (iv) sold, disposed of, or removed any of its property except in the ordinary course of business?
  • (v) sold any merchandise at less than fair market value or purchased merchandise or services at more than fair market value?
  • (vi) made or been a party to any settlement of property in favor of any person? If yes, give particulars.

19. Has the debtor recorded all sales or dispositions of assets?

20. What were the sales for the last three years and what percentage of the sales represented the profit or mark-up?

21. What were the profits or losses for the debtor for the last three years?

22. What are the causes of the problems of the debtor? Please provide particulars?

23. When did you first notice these problems and what actions did the debtor take to rectify them?

24. How much, in your estimate, is needed to rehabilitate the debtor?

25. Has any person expressed interest in investing new money to the debtor?

26. Are there any pending and threatened legal actions against the debtor? If so, please provide particulars.

27. Has the debtor discussed any restructuring or repayment plan with any of the creditors? Please provide status and details.

28. Has any creditor expressed interest in restructuring the debts of the debtor? If so, please give particulars.

29. Have employees’ wages and salaries been kept current? If not, how much are in arrears and what time period do the arrears represent?

30. Have obligation to the government and its agencies been kept current? If not, how much are in arrears and what time period do the arrears represent?

P&L Law

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