A Study On The Bankruptcy Reorganization Of Zombie Enterprises

In recent years,effectively solve the industrial overcapacity has become the key point of the governments' macro-economic regulation.Governments also take clearing the zombie enterprises as the critical path of solving industrial overcapacity.How to clearing the zombie enterprises has become social hot issues in the mean time,there are different opinions on how to do this.At present,the ways mainly includes debt restructuring out of the court,bankruptcy recombination and bankruptcy liquidation.Bankruptcy recombination system has its own unique advantages.On the one hand,a successful bankruptcy recombination can make a company obtain new vitality,let the company restore well operation.On the other hand,the interests of creditors in bankruptcy reorganization can be maximized compared with liquidation proceedings.Therefore,bankruptcy recombination will be the main way for the government to resolve the problem of zombie enterprises.Although the reorganization system can bring good social benefits,only those zombie enterprises who has the possibility of be rescued by reorganization can apply to the bankruptcy reorganization proceeding.This paper will be divided into three parts:The first part,defining the concept of zombie enterprises and its identification standards,analyzing the essence and value of bankruptcy reorganization.At present,there are two kinds of identification standards for zombie enterprises.One is CHK identification method raised by economists Caballero,Hoshi and Kashyap,which was based on the analysis of zombie enterprises in Japan's economic recession in the 1990 s.The other is the official standards,and the author's standards based on the officials' standards.In addition,through the discussion of the essence and value of bankruptcy reorganization,analyzing the necessity of bankruptcy reorganization.The second part,introduce the relevant cases and elicit the existing problems of the zombie enterprise bankruptcy reorganization.There are problems in MCC Huludao Non-ferrous Metals CO.,LTD and LDK Solar Co.,Ltd bankruptcy reorganization.Including the choice of clearing zombie enterprises' s methods,the risk of reverse knockout of zombie enterprises,recruitment of investors,the problem of the court forced approve the draft reorganization plan,and how to protect the creditors' interests.The third part,analyze the problems in the case,and put forward the corresponding thinking and countermeasures.Considering the choice of clearing zombie enterprises' s methods,the court should make a comparison between bankruptcy reorganization and liquidation,and the company should have the value of reorganization.Meanwhile put the positive reasons of reorganization into considering.Facing the issue of how to put affiliated enterprise bankruptcy together,we should choose substantive or procedural merger.Thinking of the investor recruitment,the subject of the recruitment of investors should be limited,and the recruitment should mainly rely on the market,as well as the recruitment of investors and bankruptcy reorganization of the zombie enterprises have a close industry relevance.The writer think at least two ways should be adopted to avoid bad influence of the court forced approving the draft reorganization plan.Third party assessment institution should take part in,and protect the creditors' right.Meanwhile,the creditors' should have the right to know the information of the company,and take part in making the draft reorganization plan.The writer also puts forward some suggestions on the improvement of the existing bankruptcy reorganization system in China.Such as prepackaged bankruptcy,the improve of diversified bankruptcy models.