Commercial Law, 2017 Bar — Question IV-a

ESSAY

Procopio, a Director and the CEO of Parisian Hotel Co., Inc. (Parisian), was charged along with other company officials with several counts of estafa in connection with the non-remittance of SSS premiums the company had collected from its employees. During the pendency of the cases, Parisian filed a petition for rehabilitation. The court, finding the petition to be sufficient in form and substance, issued a commencement order together with a stay or suspension order. Citing the commencement order, Procopio and the other officers facing the criminal charges moved to suspend the proceedings in the estafa cases. What is a commencement order, and what is the effect of its issuance? Explain your answer.

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