Research On The Bankruptcy Reorganization Of Listed Companies

With the development of China’s capital market,more and more companies have been successfully listed,and they have become important subjects that cannot be ignored in the development of the national economy.The sustained and healthy development of listed companies is of great significance for improving the quality and level of economic development in China.However,as China’s economic development enters a new normal,the economic structure needs to be further transformed and upgraded,and the external market environment is more complicated and severe.In this context,many companies,including listed companies,have fallen into operational and financial difficulties,and some are even on the verge of bankruptcy.Considering the particularity of a listed company,if its predicament cannot be properly resolved,it will not only seriously damage the interests of many stakeholders,but also seriously affect the healthy development of the capital market and economy.Therefore,in the face of special development situations,how to get out of the predicament of listed companies and realize the transformation and development has become an important issue that needs to be studied and solved urgently.In 2007,China introduced the bankruptcy reorganization system for the first time.The system was designed to rescue companies with renewed hope and value,and provided a new way for many companies in distress,including listed companies.For more than a decade,many companies have used this system to achieve a smooth rebirth.However,due to various reasons,bankruptcy reorganization is not universally applicable to enterprises,and the bankruptcy reorganization procedure itself has advantages and disadvantages.How to use the bankruptcy reorganization procedure scientifically and reasonably to solve the enterprise’s distress has become a problem worthy of further exploration.A lot of research has been done on bankruptcy reorganization in the academic circles at present,but due to the late introduction of the bankruptcy reorganization system in China,there are not many related practical cases,and domestic research on bankruptcy reorganization still has some shortcomings.Specifically,the number of domestic researches on bankruptcy reorganization is generally small,and the research fields need to be further expanded.The application of case analysis methods in bankruptcy reorganization research is not mature enough.As a large-scale listed steel company,Chongqing Iron & Steel has a large number of assets,liabilities and stakeholders involved in the bankruptcy reorganization,which is highly representative.This article’s research on the bankruptcy reorganization of Chongqing Iron & Steel can to a certain extent make up for the lack of related theoretical research in the domestic academia,and can also provide other distressed listed companies with reproducible experience,and also help regulate securities investment market.Therefore,this article mainly adopts the case study and literature research methods,and takes Chongqing Iron & Steel’s bankruptcy reorganization as the research object.It focuses on the causes of Chongqing Iron & Steel’s imminent bankruptcy,the motivations of relevant entities’ participation in the reorganization,and the effects of the reorganization.Subsequently,the corresponding conclusions and enlightenments are drawn.Specifically,this article is mainly divided into five parts.The first part is an introduction,which mainly introduces the relevant background,and sorts out and reviews the relevant literature on bankruptcy reorganization.At the same time,the research ideas,research methods and the general framework of the article are briefly introduced.The second part is an overview of the related theories of bankruptcy reorganization.It focuses on the concepts and characteristics of bankruptcy reorganization,the general procedures of corporate bankruptcy reorganization,and the relevant theoretical basis of bankruptcy reorganization.The third part introduces the relevant situation of the case of bankruptcy reorganization of Chongqing Iron & Steel.In this section,this article details the basic situation of Chongqing Iron & Steel,the specific process of the bankruptcy reorganization and the reorganization plan.The fourth part is the key analysis chapter of this article.This section first analyzes the reasons for Chongqing Iron & Steel’s imminent bankruptcy,then explores the motivations of the parties involved in the reorganization,and finally evaluates the effect of Chongqing Iron & Steel’s bankruptcy reorganization.Based on the above research,the fifth part is the research conclusions and research inspirations of this paper.By studying the case of bankruptcy reorganization of Chongqing Iron & Steel,this paper draws the following conclusions.First of all,bankruptcy reorganization is one of the effective ways for listed companies to get out of trouble.Proper implementation of reorganization can help companies quickly get out of crisis and can significantly improve the company’s financial performance.Secondly,the effective balance of interests is the basis for successful bankruptcy reorganization.Without this foundation,bankruptcy reorganization will be difficult to implement smoothly.Finally,a professional business management plan can effectively solve management problems of distressed enterprises,and is the key to achieving the positive effects of bankruptcy reorganization.In addition,the study of this case has brought a lot of inspirations.Enterprises shall select and implement bankruptcy reorganization according to the actual situation,and shall select the reorganization party that is most conducive to the implementation of the reorganization procedure and the subsequent development of the company.At the same time,all parties should also reposition the government’s role in the process of bankruptcy reorganization.