The Research Of Disposing State-owned Enterprises Non-performing Assets By Bankruptcy Reorganization

Because of the dominant role played by state-owned enterprises (shorted as SOEs below), the reform of SOEs has been the essential part of China’s economic reforming. But deepening reform of SOEs has exposed large quantities of non-performing assets, which has drawn extensive social concern. Problems such as absence of investors and internal control has rendered in SOEs a large number of non-performing assets and reduced the asset quality of SOEs, thus forming major obstacles to reform and development of SOEs. Proper dispose of non-performing assets of SOEs with efficiency and effect has become key to the success of reform of SOEs.Reorganization system is a new system included in the "Enterprise Bankruptcy Law of People’s Republic of China" released in 2007. Reorganization is a special legal procedure, applied by interest party, hosted by court and participated by stakeholders, to rectify the operation and reorganize the creditor’s rights and debts of debtors who have the desire and capability to reorganize, to enable the debtor to recover its operation capability.The dissertation elaborated and analyzed the state-owned enterprises non-performing assets theory and bankruptcy reorganization theory. Taking the bankruptcy reorganization of a listed SOE, company X, as an example, this dissertation explores the new method of disposing state-owned enterprises non-performing assets by bankruptcy reorganization. And it concludes that bankruptcy reorganization is an important direction for disposing state-owned enterprises non-performing assets in the new period.The structure of this dissertation can be divided into the following three parts:The first part includes Chapter Ⅰ, Chapter Ⅱ and Chapter Ⅲ. Chapter Ⅰ elaborates on the background and meaning of the subject, comprehensively analyzes relevant literature regarding non-performing assets of SOEs and bankruptcy reorganization, introduces the main research method used in this dissertation, and the dissertation’s innovation and deficiency. Chapter Ⅱ introduces the state-owned enterprises non-performing assets theory and practice, the definition, reasons and disposing practice of non-performing assets. Chapter Ⅲ elaborates on the bankruptcy theory and practice, as well as the definition, reasons and practice of bankruptcy reorganization.The second part is Chapter IV, which takes the bankruptcy reorganization of a listed SOE, company X, as an example, elaborating the actual application of bankruptcy reorganization in disposing non-performing assets of SOEs.The third part is Chapter V, which states the conclusions, and puts forward some suggestions for disposing non-performing assets of SOEs by bankruptcy reorganization. For the trapped state-owned listed enterprises whose assets are still valuable and which are still possible to recover operation capability after rescue, the best approach is disposing non-performing assets of SOEs by bankruptcy reorganization.