The Research For The Application Of Current Debt-for-equity In Enterprise

In recent years,the macro economy has been downturn,global trade growth has been slowed down,the leverage ratio of state-owned enterprises has been high,and the non-performing loan and loan ratio of Banks has been rising.Under the new normal of economy,how to transform and upgrade state-owned enterprises has become an important issue.At the end of the last century,policy-oriented debt-for-equity swaps helped state-owned enterprises to recover from their losses,and made major breakthroughs in dealing with the non-performing loans of the big four state-owned Banks.Based on this,after 17 years later,In the context of Central economic work conference take “de-leveraging”as one of the five major tasks of“cutting overcapacity,de-stocking,de-leveraging,reducing corporate costs and shoring up weak spots”,with the focus on helping some enterprises with excess capacity and high leverage to reduce leverage and stabilize growth,debt-for-equity swaps are once again on the historical stage.Under the state council issued document said the current debt-for-equity swap must advance in accordance with the principle of marketize,the rule of law,the subject to be agreed upon in accordance with the law on its own debt convertible propulsion mode,the government provides policy guidance,indicate the direction for the development of the current debt convertible.This article selects the successful market debt-for-equity swap convertible corporate FH as the research object,probe into its market debt convertible works and business performance,so as to other state-owned enterprises of debt-to-equity swap policy provide reference idea fall to the ground.Based on the analysis of domestic and foreign research status and the background of relevant theories and debt-to-equity system,this paper analyzes the causes of the formation,the causes,the operation process and the implementation effect of the market debt transfer.By means of the financial index analysis and z-score model,the financial performance change and bankruptcy risk of long-flight phoenix bonds were evaluated respectively,as well as the improvement of the internal governance structure of the company.Based on the analysis of the case of FH Company market debt-to-equity swap,the following research conclusions are drawn:First,The debt-for-equity swap can resolve the problem of high leverage ratio in a timely manner,reduce the asset-liability ratio,reduce the cost and expense of the enterprise by paying off debts,and improve the enterprise's ability to resist the risk of the industry.Help Banks to divest non-performing loans,reduce the non-performing loan ratio and reduce the risk of bad debts.The second is debt-for-equity process should pay attention to improve the internal governance structure,fundamentally break business crisis,achieve the effective exit,protect the rights of shareholders to manage the right of speech,to avoid possible moral hazard.