A Case Study On The Bankruptcy Reorganization Of NJTC

In recent years,China is facing major downward pressure on its economy,the leverage rate of enterprise is high.As the leading force of economic development,state-owned enterprises face problems such as large debts and poor management.In the fierce market competition,many enterprises fall into financial difficulties,and even terminated by the stock exchange,becoming a delisting enterprise.On November 16,2018,the Shanghai and Shenzhen Stock Exchanges officially issued the “Implementation Measures for Significantly Banning Delisting of Major Companies in the Listed Companies”,and built a new retreat to maintain the healthy and orderly development of the securities market.For state-owned enterprises that are heavily insolvent but still have development potential or have core competitiveness,bankruptcy can give enterprises a chance to regenerate,protect the interests of relevant stakeholders.This paper is mainly based on the existing research and related theories.At first,it outlines the whole process of delisting,bankruptcy reorganization and re-listing,taking NJTC as an example to explore in depth the cause of the delisting debt is internal reasons such as strategic decision-making errors and unreasonable equity structure.Mainly analyzes the conditions to be met and its advantages of its bankruptcy reorganization plan.It is concluded that the bankruptcy reorganization solve the excess capacity,ease the debt troubles,also improved the company’s business environment and maintained the overall stability of society.In addition,by analyzing the specific conditions met by the approval of the re-listing of NJTC,the rationality of the re-listing system and the link between bankruptcy and re-listing are clarified,namely in the enterprise reforming recovery after operation,consistently profitable choice re-listing,can maintain the interests of small and medium-sized investors,the company have healthy and orderly development of capital market.In the end,the paper concludes that state-owned enterprises rationally choose bankruptcy reorganization methods to save enterprises according to their own operating value,public value,industry prospects and their position in the industry,and the company’s shareholding structure.The successful implementation of bankruptcy reorganization can be facilitated by the formulation of a restructuring plan that meets the demands of all stakeholders.In addition,the appropriate promotion of the reorganization system is conducive to the improvement of the delisting and re-listing system.The relaxation of delisting conditions,allowing some enterprises with difficult operations to withdraw from the capital market,and re-listing after improving business performance and meeting the required targets will also contribute to the establishment and maintenance of a healthy and orderly market environment.As the largest state-owned oil transport enterprises,the case study of NJTC enriches the theoretical research on bankruptcy of state-owned enterprises.It is ofgreat practical significance for state-owned enterprises to de-leveraging,get rid of the debt crisis and improve efficiency by summarizing the experience from its successful bankruptcy.and has certain practical significance for opening up the channel between delisting and re-listing,providing reference for other state-owned enterprises facing similar difficulties.