Chongqing Steel Bankruptcy Reorganization Program And Effect Study In The Context Of Supply-Side Reform

With the slowdown of China’s macroeconomic development growth,the economic and energy structure of unreasonable and other issues are increasingly prominent,the steel industry has a large area of overcapacity.Since the supply-side reform was put forward at the Central Economic Work Conference in 2015,the steel industry has taken the supply-side structural reform as the lead,made full use of market-oriented,rule-oflaw means to resolve excess capacity,and properly disposed of the financial crisis and even "rigid" enterprises due to the market and its own low level of technology and efficiency.In 2016,the government proposed for the first time to solve the financial difficulties of enterprises by means of market-oriented bankruptcy restructuring,and at the same time,the introduction of various related fiscal and taxation policies to resolve excess capacity.Affected by this,the number of new types of bankruptcy cases received by the people’s courts has increased significantly,and the bankruptcy reorganization system as an alternative means to solve the plight of enterprises is being used by more and more enterprises.How to design and carry out bankruptcy reorganization is also an important part of supply-side reform,which is of great significance to deepen the structural reform on the supply side and realize the overall goal of socialist modernization.In December 2017,Chongqing Steel completed a five-month bankruptcy restructuring.In the bankruptcy reorganization,heavy steel boldly adopted the market-oriented means,is the first steel industry listed companies to carry out the restructuring case,and ultimately reduced more than 40 billion yuan of debt,successfully remove the hat.The assets and liabilities involved in this case,the number of creditors,the number of shareholders,and the adoption rate of the bond adjustment program are the most in the domestic listed companies reorganization cases,and the Supreme People’s Court selected it as the 2018 National Bankruptcy Trial Top Ten Classic Cases.This paper combines supply-side reform with the relief of steel enterprises to study the case of Chongqing Steel’s 2017 bankruptcy reorganization.Firstly,it introduces the case background of Chongqing steel bankruptcy reorganization.Secondly,the content of Chongqing steel bankruptcy reorganization plan from the main body of the program,the adjustment of claims and repayment programs and the three aspects of business adjustment.Finally,this paper reviews the effect of its bankruptcy reorganization program from the perspective of restructuring cost,restructuring effect,short-term market reaction and related stakeholder impact,and also analyzes some problems and countermeasures in the process of re-reform.Synthesis of the above,the bankruptcy reorganization makes Chongqing Steel out of financial difficulties,this kind of government support,strategic investment fund guidance,market-oriented operation,the introduction of social capital to participate in the bankruptcy reorganization program for the steel industry’s state-owned enterprises to provide experience and reference.