The Estate Managing In Legal Reconstructing Process

This paper contains four parts of analysis on operations of insolvent estate from legalperspective.The first part is of basic questions about the estate management. First, this article definesthe meaning of the estate, clarified from the general property of the estate with thecharacteristics, discusses the legal scope of the estate, pointed out that our laws are toovague generalization, we can follow the United States, the property rights belong to theestate, plus a number of provisions and exceptions enumerated. Then this paper describesabout the necessity and feasibility of major write the estate management. For the necessity,this paper discusses the changing idea about the purpose of bankruptcy law, the need tomaintain and increase the value of the estate, as well as specifying the necessity of estate’soperations in legal reconstruction process. The Feasibility discussion is mainly from theaspect of provisions of the law, the formation of professional managers and the bankruptcyjudge, and practical accumulation of the successful estate operation.The second part is mainly about main contents of the principles and methods of propertymanagement in legal reconstruction, including the principles of risk control; merit selection,according to local conditions; income and expenses match and openness and transparency,strict supervision. Specifically, this paper first mentions that the role of a manager is notlimited to regulate the debtor, but also to help the debtor to determine favorable businessprojects and seek to reduce the cost of restructuring. At last, the two main property managingmodel, forms of restructuring and liquidation in reorganization proceedings are discussed. Theformer is practiced mainly by listed companies, because of the scarcity of shell resource inour country. The latter is practiced mainly in those non-listed companies which are in goodoperation.The third and fourth parts are mainly about the operating problems and countermeasuresof estate managing in legal reorganization proceedings. The problems include: the estateoperation takes too long, the main operational control of the estate is not good and theassessment methods of the estate are time-consuming and of no objective. To resolve theseissues, this paper primarily learns from the reconstruction system of other countries,combining with the restructuring practice of our country. The methods conclude to establish the pre-reconstruction system, regulating the deadline of the consent of insolvent plan, toreplace the existing administrator control system with DIP system and regulate the propertyassessment in legal reconstruction.