Study On The Legal Issues Of Bankruptcy Reorganization Of Debt-for-equity

In recent years,China's economy is facing great challenges.The problem of high non-performing loan ratio of commercial banks,excessive corporate leverage,and the increasing number of enterprises entering bankruptcy proceedings have aroused widespread concern in the country and the whole society.Banks' huge non-performing loans,high debts and even insolvency of companies are not only affecting the national economy,but also threaten national security.In September 2016,the state council to reduce leverage enterprise,introduced the "state council on actively yet prudently reduce leverage the opinion of the enterprise" and "the guidance of marketization of bank debt to equity",put forward the marketization of debts into shares.In order to promote the diversification of enterprise bankruptcy reorganization,it is an innovative choice to introduce the market-oriented debt-for-equity into the bankruptcy reorganization program.But there are some problems in the process of market transfer of debt to shares in bankruptcy reorganization,such as lack of related laws and regulations or status is not high.Another example is that for the same problem,there is a problem of connection between different legal provisions.These problems need to be solved in the process of implementing debt-to-equity transfer in the bankruptcy reorganization.This topic studies the legal problems in the implementation of debt-for-equity swaps in the bankruptcy reorganization process,which is divided into three parts.The first part is theoretical research,this paper expounds the concept of "debt","shares" and "debt-for-equity" in the bankruptcy reorganization procedure in our country,and analyzes the "debt-for-equity" classification,legal nature,and the necessity of existence in the bankruptcy reorganization process.The second part focuses on the present situation of debt-for-equity legislation in the bankruptcy reorganization procedure,the present situation and characteristics of insolvency restructuring debt to equity of "state council on actively yet prudently reduce leverage the opinion of the enterprise" and "the guidance of marketization of bank debt to equity",and propose a series of problems in the implementation of insolvency restructuring debt to equity in China's bankruptcy reorganization.The third part according to the second part of the problem,predictable global operational policy suggestions,in order to promote insolvency restructuring debt to equity in the bankruptcy reorganization procedure.Specific suggestions are made for improving the legal provisions,improving the supporting measures and making constructive comments on the problems of connection between different legal provision.The marketization of debts into shares and its application in the bankruptcy reorganization process is of great significance to resolve China's economic predicament and promote the sustained,stable and prosperous development of our economy and society.From the long-term view,If it is proper application of debt-for-equity in the bankruptcy reorganization process,it will enrich the bankruptcy reorganization implementation,promote the positive steady reduction of the enterprise leverage ratio,and promote the enterprise reopening through multiple ways,multiple ways to revitalize.Although the road is long,it always reaches its destination.