A Case Study On Bankruptcy Reorganization Of Chongqing Iron And Steel

Under the background of world economic environment turbulence and China’s macro-economic cycle descending,the domestic economic growth has slower down and entered a new normal stage of seeking to improve quality and efficiency,while the real industry is facing the new transformation.In particular,in the industries with serious overcapacity,enterprises don’t adapt to market development is facing a sudden difficulty that survived rely on loans and insolvent.Represented by the steel industry,Many steel enterprises,which made great contributions to national infrastructure and economic development from the early days of China to the reform and opening-up period,are on the verge of bankruptcy or even become "Zombie Enterprises" depending on government subsidies.To break this deadlock,President Xi proposed the reform concept of "three cuts,one reduction,one subsidy" at the 2015 government work conference,which stressed the need to promote the bankruptcy reorganization of state-owned enterprises through marketization reform and support supply-side structural reform.Chongqing Iron and steel’s bankruptcy reorganization took place in 2017,within five months of this year,the company quickly implemented the bankruptcy reorganization and avoided delisting.In the next reporting year through the performance of business,bankruptcy reorganization showed the strong strength of corporate vitality.Chongqing Iron and steel,as the largest state-owned listed company involved in domestic assets and liabilities,is also the first "A+H shares" listed company and the first listed company in the steel industry to go to bankrupt reorganization,is deemed to be particularly significant and without precedent.The successful experiences and methods of Chongqing Iron and Steel Company’s bankruptcy reorganization are worthy of attention.Based on the case study of it’s bankruptcy reorganization,this paper start with the situation and industry background of Chongqing Iron and Steel Company,and then analyzes the motivation,program,highlights belongs to operation and effect.Through the case of study,Chongqing Iron and Steel Company provides a new way of the bankruptcy reorganization,including the balance of creditors and shareholders,the introduction of industry strategic investors,and the implementation of market-oriented reform.It emphasizes the reorganization of the company’s business plan and the adjustment of the company’s strategy to ensure the company’s follow-up operation.From the effect that reorganization brings in,Chongqing Iron and Steel Company has realized the reorganization’s motive,also has protected the related benefit from many sides,optimized the company management structure.Finally,this paper summarizes experience with a view to provide a reference for the enterprises that are also struggling in financial difficulties but still have business value.