Analysis Of Yongtai Energy Bond Default Cases

In recent years,under the double impact of the continued improvement of the peripheral economy and the downward pressure on the domestic economy,the growth rate of domestic investment consumption has declined,financing has tightened,credit contraction,corporate investment costs have risen,coupled with de-capacity and de-leveraging.As well as the gradual deepening of the new policies such as the pledge of new regulations,the risks have been released to a certain extent,making it difficult for enterprises that have relied on excessive debt expansion,fixed increase,and equity pledge to adapt to the changes in the new situation.The financing channels are limited and the bond repayment is more difficult.As a result,the bond default incidents in 2018 that have expired in the bond concentration have increased substantially in both quantity and amount.The credit risk of bonds has gradually expanded,and the interests of investors and Market stability has brought about no small impact.Therefore,it is particularly important to deal with bond defaults,maintain the stability of the bond market,protect the interests of investors,and choose the appropriate bond default disposal methods.In this paper,Yongtai Energy was selected as the case representative.The 17 Yongtai Energy CP004 issued by the company failed to pay the principal and interest,which constituted a substantial breach of contract.This breach of contract triggered another 13 shares of the issuer’s total of 9.93 billion yuan of inter-bank bonds and the issuance of Yongtai Group.The “cross-protection clause” of the 18 billion yuan 18 Yongtai Group SCP001 has deepened the impact of the breach.Through an in-depth analysis of the causes and consequences of the Yongtai Energy Bond default,it is found that the direct cause of the company’s bond default is the concentration of the loan due,and the tightening of the syndicated loan,which makes it difficult for the company’s cash flow to maintain normal production and operation.The reason is that due to the blind expansion of enterprises,high debt ratio,fixed assets are constantly being cashed out,and external financing channels are limited.The content of this paper is mainly divided into five chapters.The first chapter is the introduction,which mainly introduces the research background and purpose,researchsignificance,typical analysis,related literature review,etc.The second chapter is Yongtai Energy’s bond default.The case introduction mainly describes the industry background of Yongtai Energy,the basic situation of the company and the process of bond default.The third chapter is the case analysis part of this article,which is also the core of the article.This part mainly focuses on internal and external reasons.This paper analyzes the reasons for the default of Yongtai Energy Bond to explore the risk point of the bond redemption crisis,and analyzes the impact of Yongtai Energy’s default and bond disposal methods,laying the groundwork for the proposed strategy in the next chapter.The fourth chapter is based on the reasons for the default crisis of Yongtai Energy Bond,the way to deal with it,and put forward some suggestions for issuers,regulators,rating agencies,investors;finally,in the conclusion and revelation,the author’s default crisis on Yongtai Energy Bond The analysis of the case is summarized and there is a similar situation at present.Overcapacity class enterprise planning and financing of future development prospects make.