The Research On The System Of Disposing Property Of The Estate Under 11 U.S.C. §363

11 U.S.C. §363(b) authorizes a trustee, after notice and a hearing, to use, sell, lease, other than in the ordinary course of business, property of the estate. Taking advantage of Section 363 of the Code to dispose the property of the estate, on the one hand, may be done quickly, sold for higher prices and preserved the going concern value of the company, however, on the other hand, it may constitute a “Sub Rosa Plan” at the expense of the creditors. The Chrysler, through 363 sales of substantially all the property of the estate, completed its reorganization in just 42 days. However, at the mean time, the transaction agreement of the Chrysler case is generating both criticism and support among bankruptcy academics.This Article explores the complex problem in the case of Chrysler bankruptcy reorganization. Chapter 1 describes how the trustee of Chrysler structured the sales of property of the estate after filing for bankruptcy, and the dissenting opinion of the Chrysler's secured creditor. By combining analysis of 11 U.S.C. §363 and related precedents, Chapter 2 discusses the standards the courts applied when decided whether to approve a 363 sale or not. Chapter 3 presents the advantages of Section 363, and describes the rationality and legitimacy of Section 363 by authorizing the trustee to dispose the property of the estate. By comparing to Chapter 11 of the Code, Chapter 4 analyses the potential problems and advises certain reforms. By contributing an efficient evaluation method, it is possible to avoid damage the interests of creditors even though taking advantage of 363 sales. For the last point, on the basis of the Enterprise Bankruptcy Law of the PRC and judicial practice of the enterprise bankruptcy within the territory of China, Chapter 5 discusses the necessity and possibility of absorbing new system of disposing property of the estate similar to Section 363.