A Case Study On The Consequences Of Judgment Of The Value Of Listed Companies' Reorganization

In recent years, many enterprises have got into financial distress one after another based on the reasons of market competition, industry environment, or the enterprise itself. More and more enterprises are undergoing bankruptcy and reorganization, while the number of cases of listed companies applying to the court for bankruptcy reorganization is on the rise. Bankruptcy reorganization system is a special legal procedure which was newly introduced by Enterprise Bankruptcy Law in 2007. The system is aimed at helping the debtor who has already had reasons for bankruptcy but still has hopes for revival to get rid of financial difficulties and to restore its normal business ability. The debtor’s business operation and the creditor’s debt transfer and repay will be reorganized according to the consultation by stakeholders who can resort to the law enforcement to adjust their interests when necessary. Compared with bankruptcy liquidation, bankruptcy reorganization is a new system with advancement which will neither cost the creditor dearly nor lead to mass unemployment because of dissolution. It can also help to avoid a damage reputation caused by bankruptcy. This text doesn’t deny the good effect when listed companies chose reorganization after bankruptcy. But with more and more companies like that, there are problems which unfavorable consequences are larger and deeper. Sometimes, compared with reorganization, bankruptcy liquidation may be a better way to solve the problems. Bankruptcy reorganization brings new opportunities to listed companies who are in financial distress and becomes the lifesavers to those who are on the edge of delisting. But we should think deeply about listed company’s choice to reorganize and the consequences after the value judgment of reorganization.This article takes relevant concepts of reorganization and value judgment as cut-in points to elaborate the latest research results about company’s bankruptcy reorganization at home and abroad. It comprehensively and systematically presents the social, economic and legal consequences from micro firm-level and national macro-level perspectives through deep analysis of the actual cases. The article analyses and summarizes the micro consequences of reorganization and value judgment from the perspectives of the debtor, creditor, investor, the court and other participants. And it also analyses the macro consequences of reorganization and value judgment from the perspectives of resource distribution, capital markets, the rule of law and social stability. Furthermore, in order to lay a solid foundation for the construction and consummation of our listed company’s reorganization and value judgment system, it provides reference for revision and optimization based on our actual situation.