Business Debt-equity Research

As two different types of rights, while maintaining their own features, Debt and equity also share many commonalities, which make debt-for-equity swap possible. But scholars have always focused more on the policy of debt-for-equity research than commercial debt-for-equity swap, thus many people neglect of the value of the latter. Therefore, this article first discusses the legal nature and comparative analysis of debt-for-equity swap, then discusses the measure to operate debt-for-equity swap:policy debt-for-equity swap, commercial debt for equity swap and convertible corporate bonds; and reviews the origin of policy debt for equity swap in China and the negative effects caused by it; describes the resulting rise of commercial debt for equity swap in China and its origin, meaning and legal character; through the conflict caused by commercial debt for equity swap in our current legal system, points out the difficulties and obstacles during the operation of commercial debt for equity swap in china, and the legal problems it would face; Finally, the article points out that the commercial debt for equity swap should be included in bankruptcy prevention system, and offers ideas to build the system of debt for equity swap agreed with our national conditions.