The Study On The Path Of Financial Distress Company Recovery

In recent years,Chinese economy has been in a ’new normal state’,where the speed of economic growth is slightly lower and industrial structure is continuously upgrading,solving the problem of excess production capacity has become the key work in economic structural adjustment.In such a complicated economic environment,some companies without a sound system and good market competitiveness has gotten into financial difficulties,these companies’ financial difficulties recovery become social concern.Trusteeship management insolvency reorganization and M&As can help enterprises to get external resources,improve the ability of existing and acquire new skills.It can optimize the structure of assets and liabilities at the same time.These effects is crucial for enterprises in difficulties,so trusteeship management,insolvency reorganization and M&As can help enterprises in difficulties a lot.Firstly this paper summarized the related references at trusteeship management,insolvency reorganization and M&As of enterprises in difficulties.Secondly,this paper mainly describes the method of case study of the whole process that A company got in financial trouble from the beginning of its listing to the time which E company helped it to return to normal production profit by merger A,and this paper analyzes the reasons for its financial difficulties and its competitive advantages.This paper divide entire merger process into three stages and refine each stage the characteristic and results of A company’s work.And extracting the dimension of case analysis on the basis of case study and refining each stage the emphasis of the work,analyzing the internal mechanism of recovery in each stage,making a presentation of each stage’s characteristics,priorities,contents and functions.In the end,exploring theoretical framework for the path of difficulties companies’ restoring.The study found that enterprises in difficulties can recovery its value on the path of trusteeship management,bankruptcy reorganization and M&As.On the one hand,trusteeship management can reduce the burden of entrusted enterprise,on the other hand,trusteeship management can also prepare for deeper resource integration in the future.Bankruptcy reorganization can adjust the creditor’s rights debt relations and the debtor in the internal affairs to implement the prevention of bankruptcy liquidation.Bankruptcy reorganization can also makes the interest measurement and debt temporarily stop to get more necessary conditions for M&As.The final stage is Integration and M&A,difficulties companies must develop a long-term strategic to guide the whole work and lay emphasis on M&A Cultural Integration for cultural conflict is concentrated reflection of the others.