Bankruptcy Reorganization,Government Intervention And Protection Of Creditors’ Interests

With the prosperity and development of the bond market,the importance of cr editors in the market has continued to deepen.Protecting the interests of creditors i s conducive to the sound development of the entire market economy.The official p ublication of my country’s "Corporate Bankruptcy Law" in 2007 marked the offici al establishment of my country’s bankruptcy and reorganization system.With the r apid development of the capital market,cases of bankruptcy and reorganization of listed companies due to debt crises are increasing.There are many interest subjects involved,and each subject expresses different interest demands during the reorgan ization process,which makes conflicts of interest obvious.Under the influence of i nformation asymmetry,some stakeholders naturally have external defects and their interests are easily infringed.Among them,the interests of creditors are more seve rely damaged.Therefore,the protection of creditors’ interests has gradually becom e a hot topic in the field of bankruptcy and reorganization.In addition,since the est ablishment of the bankruptcy and reorganization system in my country,the bankru ptcy and reorganization practices of Chinese enterprises have shown strong local c haracteristics involving the participation of local governments in the development of bankruptcy and reorganization practices for more than ten years.The participati on of local governments will affect the efficiency of bankruptcy and reorganization to a certain extent,and affect the final bankruptcy and reorganization results,whic h in turn affects the interests of creditors.Therefore,it is necessary to study the eff ects of local government behavior in the bankruptcy and reorganization of enterpri ses.The effect and its mechanism of action will also help to better understand the r elationship between the government and the market,and provide certain suggestio ns for improving the external environment for corporate bankruptcy and reorganiza tion and promoting the marketization process in an all-round way.The bankruptcy and reorganization case of LDKSolar is a typical case of bank ruptcy and reorganization with great influence in China,which has high research v alue and research significance.On the basis of combing the bankruptcy reorganizat ion system and the existing theory,combined with the institutional background of Chinese characteristics,this paper takes the bankruptcy reorganization of Jiangxi S aiwei as an example to study the bankruptcy reorganization under the background of local government intervention and the protection of creditors’interests.T his article mainly analyzes the intervention of the local government from the establ ishment to the bankruptcy reorganization of Jiangxi Saiwei and the result of the da mage to the interests of creditors during the reorganization process,to explore the i mpact of the government’s intervention in bankruptcy and reorganization on creditors and the market.,Obtained the following conclusions:(1)The direct caus e of the damage to the interests of creditors in the bankruptcy and reorganization of Saiwei was caused by the serious insolvency of the company due to the excessive debt financing strategy and poor profitability of Saiwei,but the government’s Exce ssive assistance has deepened the debt repayment risk of Saiwei,and neglected the protection of creditors’interests in the subsequent intervention in the proces s of bankruptcy and reorganization,which deepened the damage to the interests of creditors;(2)The local government’s intervention in the bankruptcy and reor ganization of Saiwei has achieved certain Economic goals and social goals protect the interests of a person,but also ignore the longterm impact on the business envir onment,which is not conducive to the efficient allocation of market resources;(3)The incompleteness of China’s bankruptcy and reorganization system makes credit ors’ interests There is still a dilemma in protection,and local governments should promote the improvement of the legal and regulatory mechanisms for bankruptcy a nd reorganization,and build a better external environment for the protection of the interests of bankruptcy and reorganization creditors.The possible contribution of this article is that in the current research on dome stic bankruptcy and reorganization,there are few literatures on corporate bankrupt cy and reorganization from the perspective of local governments.Therefore,comp ared with traditional corporate executives,creditors,and capital contributions Peop le,strategic investors and institutions.This article selects the perspective of local g overnment,combines the background of the Chinese system,and combines the per spective of accounting and law to provide some ideas on the protection of creditors’ interests in bankruptcy reorganization,and enrich the field of bankruptcy reorgan ization.Case study.