Chongqing Iron And Steel Bankruptcy Reorganization Case Study

China’s corporate debt burden has become more serious,the company’s operations are also difficult.In particular,state-owned traditional enterprises play a pivotal role as the leading force and pillar of the national economy during the rapid development of the country.In the current economic situation,due to the nature of its industry,many enterprises have fallen into a debt crisis due to poor management.For state-owned enterprises that have serious development potential but still have development plotential,bankruptcy and reorganization can protect relevant stakeholders.At the same time,it can also give the enterprise a chance to regroup.The paper first reviews the literatures of domestic and foreign scholars on bankruptcy reorganization and financial performance,and then summarizes the general situation of 54 companies that have experienced bankruptcy and reorganization since 2007,as well as the financial performance before and after reorganization,and found that Only a small number of enterprises will choose to retain the original main business,and secondly introduce the general situation of Chongqing Iron and Steel and the reasons for its bankruptcy reorganization,and sort out the reorganization process.The article uses the combination of financial index analysis and analytic hierarchy process to study the financial performance of bankruptcy after bankruptcy reorganization.Then,the 19 listed steel companies are compared with the current financial performance of Chongqing Iron and Steel,and finally the bankruptcy reorganization is evaluated for various stakeholders.The research results show that after the bankruptcy and reorganization of’Chongqing Iron and Steel,its financial indicators have been improved,and its solvency and profitability are particularly prominent.However,the development capability of the company is olbviously insufficient.It is more clear by comparison with 19 steel companies.There are indeed defects in the sustainable development of enterprises;enterprises have a certain effect on the value of enterprises after reorganization;reasonable and effective reorganization plans are beneficial to all stakeholders.This paper’s case study of Chongqing Iron and Steel has enriched the research on the financial performance of bankruptcy and restructuring of state-owned listed companies.Chongqing Iron and Steel is the first“A+H”stock in China to undergo bankruptcy reorganization,summing up experience from its success stories to the destructive capacity of intrinsic enterprises.It is of practical significance to get rid of the debt crisis and improve the efficiency of enterprises.