The unified procedure reduces the ex ante costs of choosing one procedure over the other as well as the ex post costs of shifting from one procedure to the other in case wrong procedure was chosen. The reform also introduced a number of new systems into the rehabilitation proceeding, such as comprehensive stay order, absentee voting, etc. Moreover, basic ideas of debtor-in-possession (“DIP”) are incorporated into the receiver system, and secured and unsecured creditors are guaranteed the liquidation value of their collateral and the corporate value. Those modifications are intended to improve the ex ante efficiency of rehabilitation proceeding by giving the debtor an incentive to file for rehabilitation.
