Enterprise Bankruptcy And Reorganization Valuation Study Of The Theoretical Framework

Corporate reorganization is a positive legal process that can save the plight of enterprises, while it is also a system of high cost, large social obligation and complex procedure, once the reorganization failed, it would bring great harm to creditors and shareholders. Therefore, it is necessary to determine whether the corporate reorganization is feasible and worthwhile. It requires assessors to appraise the value of the bankrupt enterprises and to confirm the reorganization of the bankrupt enterprises is promising. This can help the court determine whether to pass the application of corporate reorganization. It is necessary to appraise the value of corporate reorganization even when the reorganization process begins, and in the process that debtors make their reorganization plan, creditors verify the reorganization, the court to determine whether the reorganization should be end etc. Therefore, it is necessary to carry out the appraisal value of the enterprises which get into bankruptcy proceedings and to make it clear that what kind of enterprises have reorganization value.In this paper, standard research methods have been used. The research scope includes state-owned listed enterprises which involved in the bankruptcy proceedings, however small and medium enterprises caught in heavy burden are not taken as the research objects in this paper. This paper is divided into five parts. The first part is introduction. The second part, analyze from the theoretical basis of appraising bankruptcy reorganization value, thus further introduce the necessity of establishing the bankruptcy reorganization system in our country. The third part, introduce the basic procedures of bankruptcy reorganization firstly, definite the three key points of the appraisal value, clarify the urgency and necessity of the bankruptcy reorganization appraisal; and introduce bankruptcy reorganization appraisal through comparative study of bankruptcy reorganization system, liquidation system and reconciliation system. The forth part propose appraisal theoretical framework of bankruptcy reorganization value that starting on the appraisal circumstance logically. Appraisal theoretical framework includes appraisal subject, appraisal object, appraisal substance, appraisal objectives, appraisal assumptions and appraisal principles, appraisal methods, the implementation process and appraisal reports. In this paper, take one reorganization enterprise as an example and discuss various elements of the theoretical framework in detail, appraisal object, which is reorganization value, is the core element of this chapter. At last, the paper gets the conclusions and the issues to be further studied.