Reorganization Research Of KM Power Generation Company

KM Power Generation Company is the object of study in this graduation thesis. I will find the reason why KM Power Generation Company is faced with going bankrupt in the market circumstances of our country’s electricity policy, and find the solution of KM Power Generation Companies debt crisis. By qualitative analysis, KM Power Generation Company has ruled out the possibility to reorganize assets and reorganize debt but bankrupt. Choosing bankrupt liquation or reorganization is the problem. First I need to study their theory evidence and the influence for the company. Second I will assess the income when KM Power Generation Company bankrupt liquidation, account the redemption rate of creditors. Third I suppose KM Power Generation Company could go on managing, then predict the insufficiency of cash flow and discounting by discounted cash flow method in the due time of reorganization, accounting the redemption rate of creditors in two way: reducing the debt and delaying repayment period. Comparing the redemption rate of bankrupt liquidation and reorganization, we could get the result of KM Power Generation Company should reorganize in the way of delaying repayment period. Last, I will design the reorganization planning under the condition of reorganization.