Case Analysis Of Bankruptcy Reorganization Carried Out By ST Chaori

In the era of opening world economy,the driving force of market development stems from the enterprises which fully exert their economic and social value.As a result,the bankruptcy of enterprises may result in a wide range of economic downturn.The global crises in last century and this century just proves that,if there is financial problem in well-known listed enterprises and transnational enterprises,it may cause the economic crisis in a nation even in the whole world.Therefore,the world's legal community has attached more importance in how to run the reorganization process of bankruptcy.As a newly set procedure in new bankruptcy law,the reorganization process of bankruptcy updates the conception and structure of original bankruptcy law,widening the idea of civil and commercial law.That will mean that the distressed company can obtain the channel of rebirth and revival under the premise when fairly paying the debts.Therefore,it is of vital significance.The key of the overall bankruptcy procedure is reorganization plan,whose target is to help the debtor return to normal operation.However,the enterprises being through reorganization may have some experiences different from others;hence their operations have their own characteristics,which are just reflected in their reorganization plans.The development of reorganization plan plays a vital role in the success of the whole bankruptcy reorganization.Therefore,it is important in reorganization procedure to develop reorganization plan.The principles including fairness,feasibility and efficiency shall be followed when developing the plan;the interest balance of creditors,debtors and other stakeholders shall be fully reflected in the content,voting,execution and supervision of the reorganization plan.This thesis explored the bankruptcy reorganization case of Shanghai Chaori Solar Technology Co.,Ltd.(hereinafter referred to as "ST Chaori").At first,it started from the reorganization mode of ST Chaori.When ST Chaori was stuck in debt crisis and on the verge of bankruptcy,its company asset,operation condition and main businesses could be still developed,with the possibility of vitalizing some distressed businesses.Therefore,base on the legislation spirit of the “recycling-type reorganization” in bankruptcy reorganization,the mode of retaining company's businesses was adopted;after that,it analyzed the operation procedure of the whole bankruptcy reorganization plan,and made detailed analysis on the relevant means applied in company's bankruptcy reorganization.In order to help the company pass the reorganization means and avoid being implemented bankruptcy liquidation,ST Chaori's leaders and the third-party managers were fully involved in the work,including cleaning up and assessing the company asset,the check and verification of creditor's right.What's more,they reasonably handled company's property and reorganized its existing debts,hoping to attract investors to invest assets in it.By this way,the company was able to keep on operating.In the meantime,it analyzed the influence of bankruptcy reorganization on financial performance and the results in four different stakeholders,such as debtors,employees,shareholders and creditors.It is found that after the bankruptcy reorganization procedure being carried out,the original business could be retained and the revenue could be shifted from losses to surplus;for creditors,ST Chaori's bankruptcy reorganization could make them gain higher reorganization payment rate than that of bankruptcy liquidation;for workers and shareholders,the company in the entire bankruptcy reorganization process also maintained the interests of these individuals.In the end,based on the case of Chaori's bankruptcy reorganization,it gained some practices that the companies may learn from it.Through the above analysis,this thesis summarized some necessary conditions for listed company's bankruptcy reorganization and proposed relevant suggestions,to provide some experience and assistance for the promotion of bankruptcy reorganization and its application by enterprises.Firstly,after the listed companies being into the procedure of bankruptcy reorganization,the third-person status of the managers is helpful to the smooth reorganization.The managers is able to ensure the bankruptcy reorganization program to run efficiently,and achieve fairness and justice in the process of bankruptcy reorganization;bankruptcy reorganization can bring added-value to the enterprises,to avoid the waste of enterprise resources;the reorganization of system can also present how to balance the interests of every party when adjusting rights and benefits,as well as the legislation-oriented reorganization system;if the company choose the mode of retaining the operation,its short-term performance of bankruptcy reorganization has been obvious promoted.Secondly,bankruptcy reorganization needs to start from protecting the basic interests of the employees and other stakeholders.Therefore,bankruptcy reorganization is the effective way of protecting the interests of creditors and small and medium-sized shareholders';the combination of debt restructuring and asset restructuring is a necessary condition for the success of bankruptcy reorganization;the diversification of the interests in company's bankruptcy reorganization shall be ensured.Hence,in the plan of bankruptcy reorganization,it shall balance and protect the interests of every party;when the listed company is implementing the reorganization procedure,its operation process needs to be continuously improved,to enable the company to achieve expected effects under the background of diversified supervision mechanism of bankrupt reorganization.