PHILIPPINES Law and Practice Contributed by: Kerwin Tan, Eugene Kaw and Veronica Balbin, Tan Hassani and Counsels
2.8.11 Owner’s/Lessor’s Consent Generally, self-help is not available in the Philippines. If a deregistration power of attorney has been grant - ed in favour of the owner, mortgagee or lessor of the aircraft, they may export such aircraft without the lessee’s consent, although this would be subject to actual possession of the aircraft. During the negotiation of the lease or mortgage agree - ment, the owner, mortgagee or lessor may request that a deregistration power of attorney be issued in their favour so that they can export the aircraft with - out need for the lessee’s consent. The language of the deregistration power of attorney should be all- encompassing and broad enough to cover all appli - cable government agencies likely to be affected by an application for export. Subject to additional administrative requirements, the aircraft is not required to physically be in the Philip - pines during the deregistration process. However, any aircraft that is already the subject of a deregistration application shall not be permitted to be flown nor be given approval for flight. 2.8.12 Aircraft Export Permits/Licences An aircraft must obtain an airworthiness approval for export by filing an application prescribed by the CAAP. The airworthiness approval for export cannot be issued in advance as the aircraft must still meet the airworthiness requirement for a standard certificate of airworthiness. Used aircraft should have under - gone an annual inspection, which should have been performed and properly documented within 30 days before the date of the application for airworthiness approval for export. There is no specific timeline to receive an airworthi - ness approval for export, although in practice it takes about one to two weeks. An aircraft that is not airworthy can still be exported (eg, disassembled and crated), but it will not be issued an export certificate of airworthiness.
2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft No significant export tax or any other customs duties need to be paid to export an aircraft. 2.8.14 Practical Issues Related to Deregistration of Aircraft Issues may arise if the lessee or operator does not co-operate, as the execution of the necessary docu - ments for the aircraft deregistration might not be easy. However, so long as the deregistration documents are complete, there should not be any issue (but proof of removal of registration marks is one of the require - ments for deregistration). 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations Insolvency proceedings in the Philippines are gov - erned by the Financial Rehabilitation and Insolvency Act of 2010 (FRIA), which provides for the rehabilita - tion and liquidation of a debtor undergoing a financial condition wherein it is generally unable to pay its liabil - ities as they fall due in the ordinary course of business or has liabilities greater than its assets. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, In voluntary proceedings, an insolvent debtor volun - tarily initiates the rehabilitation by filing a rehabilitation petition with the courts. Involuntary proceedings may be used by any creditor of the insolvent corporation with a claim of – or the aggregate of whose claim is – at least PHP1 million or at least 25% of the subscribed capital stock or partners’ contributions, whichever is higher. Pre-Negotiated Rehabilitation By itself or jointly with any of the creditors, an insol - vent debtor may file a verified petition with the court for the approval of a pre-negotiated rehabilitation plan that has been endorsed or approved by credi - tors holding at least two thirds of the total liabilities of the debtor, including secured creditors holding more Insolvencies and Receivership Court-Supervised Rehabilitation
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