The Legal Issues Research Of Commercial Debt For Equity Swap

Historical experiences tell us that Non-performing Assets of banks and financial cri-sis are closely related. Huge Non-performing Assets in banks do great harm to national economic safety and political stability.How to dispose the Non-performing Assets is a se-rious problem that we must face to .From the experience of the first disposal of Non-performing Assets in state-owned commercial banks,we can see that there is no mutual system for Non-performing Assets disposal in China. This article is based on the comparisons of using foreign investment to dispose non-performing assets,overall trans-ferring full right to dispose non-performing assets ,Political Debt for Equity Swap and Commercial Debt for Equity Swap. Considering the status and characteristics of China's socialist market economy, This article discusses the stakeholders'legal status and benefit protection in Commercial Debt for Equity Swap , as well as the legal definition and legal basis of Commercial Debt for Equity Swap, The article draws the conclusion that the most suitable way to dispose non-performing assets of the state-owned commercial Banks in China is Commercial Debt for Equity Swap. This article also suggest to put forward the Commercial Debt for Equity Swap into the enterprise Bankrupt Prevention System and establish the legislative proposals in China's national conditions of Commercial Debt for Equity Swap system.