Case Study Of XX's Textile Printing And Dyeing Corporation's Restructuring

This paper is based on the case study of XX Textile printing and dyeing corporation's successful restructuring. The corporation once to be the leading state-owned enterprise in XX city, but suffered from bankruptcy due to economic environment changes. Now it operates very well after the successful restructuring. Before the restructuring, the corporation owned a poor management and was insolvent for many years which lead to great financial losses. In addition, the basic salary of employees could not be paid on time which made employees disgruntled. The corporation affected the local economy development and social stability badly. Under such a situation, the local government implemented the bankrupt policy on the corporation, made the property distribution rate of external creditors to be zero. Thereafter, brought in strategic investors to restructure and reorganize the corporation in order to activate assets. The restructured corporation had a great development after a series of internal reformations and innovations, for example, reformation of policies and regulations, innovation of technology and management, etc. There are three aspects of this paper:First of all, it elaborates the background and process of the XX Textile printing and dyeing corporation's restructuring in detailed, including the evaluation and auction of assets, the selection of strategic investor, the placement of employees, the transfer of assets, and the operation of the new corporation.Secondly, it proceeds a detailed analysis of the whole bankruptcy restructuring with knowledge of management science, strategic management, human resource management, corporate governance etc. as well as summarizes the successful experience and shortage in the whole restructuring process from the aspects of government, strategic investors, and the new corporate's developments and innovations.In the end, the development of the successful restructuring corporation is analyzed from multi-purpose in terms of its current situation. The opportunities and challenges faced by the corporation as well as suggestions about how the corporation can be bigger and stronger are proposed.