Bankruptcy Reorganization Of Chongqing Iron & Steel And Its Performance Research

Facing the problem of nationwide overcapacity,China began to implement supply-side reform in 2016.The overcapacity problem in the steel industry is prominent,and it faces a variety of operating and financial risks.Steel industry is a key industry in supply-side reform.China has clearly proposed that the steel companies in distress should minimize bankruptcy and liquidation,and advocate reforms through mergers and reorganizations.There are many state-owned enterprises in China’s steel industry that are facing severe financial crisis but still have strong market competitiveness.In the context of supply-side reform,bankruptcy reorganization has become an effective way to rescue some of these enterprises..Chongqing Steel,a state-owned steel company,used market-oriented means to conduct an efficient and successful bankruptcy reorganization in financial distress.In the process of bankruptcy reorganization,Chongqing Steel and the reorganization party faced complex and diverse problems,and the resolution measures were innovative and targeted.It was considered to be a "particularly significant and unprecedented" bankruptcy reorganization case.This article selects Chongqing Iron and Steel as a case study to provide experience and reference for the bankruptcy and reorganization of enterprises facing financial crisis but still having salvage value.This article summarizes the existing theoretical basis and related research content,and analyzes the reasons,difficulties,solutions and the effect after reorganization and effects of Chongqing Steel Bankruptcy and reorganization.In the background introduction of the case,this article sorts out the various efforts made in Chongqing Steel ’s self-rescue process,important issues in the reform process and elaborates on the reform plan.In the analysis of the case,this article analyzes the reasons for Chongqing Steel ’s severe losses,degree of external dependence,the feasibility of bankruptcy reorganization,the obstacles in the reorganization process and the measures to resolve the obstacles.After that,this article analyzes the effect of bankruptcy and reorganization from the perspectives of market response,financial performance,input-output efficiency and stakeholder interests.In general,Chongqing Steel faced many complex problems never seen in previous bankruptcy and reorganization cases during the reorganization process.During the reorganization process,effective measures were taken to make the company better in market performance,financial performance and the utilization of production capacity.Finally,this article summarizes Chongqing Steel’s bankruptcy and reorganization experience,provides a reference for companies in similar dilemmas,and makes recommendations for improving China’s bankruptcy and reorganization system.