Study On The Cause And Effect Of Bankruptcy Reorganization In Business Reservation Mode ——Take Fushun Special Steel Co As An Example

After the 2008 financial crisis,China adopted a loose monetary policy to stimulate the economy,the scale of the enterprise debt investment increasing,therefore,some large manufacturing enterprises in our country the executives do not consider the enterprise actual operating ability and solvency and borrow too much,then cause the financial trouble or even bankruptcy of enterprises.In 2015,China implemented supply-side structural reform.Most of the long-term output of China’s steel industry is low-end products,it is difficult to meet the market demand for high-end products.Iron and steel industry belongs to the traditional manufacturing,fixed assets and inventories take up a lot of money,and large iron and steel enterprises are state-owned or equity,the overall operating efficiency is not high,difficult to timely feedback,and solve problems,once the iron and steel enterprise products in market competition at a disadvantage,is easy to capital chain rupture caused by the financial crisis,which may cause the enterprise bankruptcy liquidation.All enterprises in financial crisis can not only go through bankruptcy liquidation,but also through bankruptcy reorganization to maximize the resources and value of the enterprise,and based on the interests of all stakeholders to consider the opportunity to revive the enterprise.In this paper,the operating value and stakeholder theory through the bankruptcy restructuring of Fushun Special Steel case,analysis of the choice of business retention mode of bankruptcy restructuring on the company’s impact path,and finally verify the effect of bankruptcy restructuring.At present,the domestic bankruptcy reorganization often stays in the theoretical stage,mostly from the legal and financial indicators to discuss,and mostly for empirical research while ignoring the implicit value of the practice in the bankruptcy reorganization.The value and innovation of this paper lies in that not only from the financial indicators but also from the consideration of non-financial indicators,so that the enterprise in the bankruptcy reorganization to choose the appropriate mode conducive to the "rebirth" of the enterprise,but also demonstrated that the enterprise bankruptcy reorganization can achieve greater resources and value.In this case,Fushun Special Steel Co.,LTD.,as a leading enterprise in the special steel industry,has improved its production and operation,especially its debt paying ability and utilization rate of funds,after the new management team entered the company.This case,as a typical case of traditional manufacturing industry,has a certain degree of representativeness.Through the study of this case,the main Revelations are as follows: the enterprise has a large hidden value and core competitiveness,but in the operation of insolvency can be restructured through business retention mode;This method can also fully and maximally protect creditors through the debt-equity swap,while strengthening the bank exit mechanism and other aspects of the effect is also very significant;The bankruptcy reorganization of business retention mode has certain applicability,and reasonable and effective bankruptcy reorganization plan can improve enterprise performance.As the only listed special steel enterprise in northeast China,Fushun Special Steel has attracted the attention of local government and social parties.Through the analysis of this case,this paper illustrates that the bankruptcy reorganization mode of business retention mode plays a certain role in deleveraging and getting rid of debt of state-owned enterprises in China.