Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1717)
The main purpose of Presidential Decree No. 1717 is to rehabilitate the Agrix Group of Companies by consolidating their assets and liabilities into a new corporation, New Agrix, Inc., to protect the interests of investors and creditors.
The Securities and Exchange Commission declared the high-interest-yielding investment contracts of the Agrix Group as illegal devices or schemes involving misrepresentation, detrimental especially to small investors.
New Agrix, Inc. is authorized to be organized as a private stock corporation to take over the assets and liabilities of the dissolved Agrix Group of Companies and to carry out the rehabilitation program.
The paid-up capital consists of the sum of valid claims of investors and shareholders from the Agrix Group, based only on the principal amounts of their investments, excluding interest, dividends, and those with pending or filed criminal charges.
The Claims Committee composed of representatives from the National Development Company, SEC, and the Ministry of Justice is tasked to establish rules and regulations for determining the validity of claims of investors and shareholders.
Secured obligations shall bear 12% interest per annum on outstanding balances and be payable in equal annual installments over five years starting one year from the decree's effectivity date.
Unsecured obligations shall not bear interest and shall be paid in equal annual installments over ten years starting one year from effectivity, with no recognition of accrued interests or penalties as of the decree date.
The National Development Company shall extend an interest-free loan not exceeding Ten Million Pesos to New Agrix, Inc. to aid in the rehabilitation program, except if further authorized by the President.
New Agrix, Inc. shall be exempt from all taxes under the National Internal Revenue Code for a period of five years from the date of the decree to accelerate its rehabilitation.
The National Development Company manages New Agrix, Inc. until the interest-free loan is fully paid. Afterwards, the Board of Directors of New Agrix will appoint its own management.
No, the National Development Company, including its officers, employees, and agents, is exempt from liability for acts or omissions in connection with implementing the decree.
All monetary claims against the dissolved corporations pending or filed in the future shall be dismissed. No legal orders can interfere with New Agrix, Inc.'s full possession and ownership of the dissolved corporations' assets.
The Securities and Exchange Commission and other relevant government agencies or offices are mandated to extend all assistance for the decree's implementation.
The decree takes effect 90 days from its date, or earlier upon certification by the Ministry of Justice that criminal charges against Agrix principals have been filed.