Analysis Of The Effectiveness Of Government In Debt Restructuring

With the constant development of the securities market,the scale of the listed companies in China is expanding.In today's capital market,the competition is increasingly fierce,the listed company will face a variety of financial risks for a variety of reasons,once the company has financial problems,as well as capital turnover difficulties,the serious may be due to poor management and the company will face the risk of exit.When companies face financial difficulties,many choose to restructure their debts to help themselves.Debt-restructuring is a matter in which a creditor makes a concession under an agreement with the debtor or a court decision in the event of financial difficulties of the debtor.Debt restructuring not only minimizes the losses of both creditors and debtors,but also enables profitable companies to continue to thrive.Through combing the relevant literature of debt restructuring of listed companies,and based on the relevant theory of debt restructuring,this paper studies the effectiveness of the government in the debt restructuring of public companies by taking the case of Sanjiu group as the main case and the case of sea king biology as the comparative case.In general,the reasons for government involvement in debt restructuring can include as follows:1.prevent investors from losing interest;2.Protect the interests of creditors and debtors;3.Protection of the local economy.Government involvement in debt restructuring is also conducive to a smooth debt restructuring.We can find that after the debt restructuring,the financial situation of enterprises has improved significantly,and their capacity of every share,ability to repay debts and operating capacity have improved significantly.This shows that debt restructuring is beneficial to the enterprises in financial difficulties to reverse their difficulties and enter a good state of development.The comparison between the two cases shows that the debt restructuring of listed companies with government involvement will be relatively smooth,and the financial position of the debt restructuring will be better than that of the anarchic listed companies.This paper is divided into seven parts.The first part is the introduction,including the research background,research purpose and significance,research framework and research methods,as well as innovation points and literature review.The second part is the relevant theoretical basis of debt restructuring,which is mainly divided into basic concepts and three related theories.The third part mainly introduces the background of debt restructuring of Sanjiu Group and the specific implementation of debt restructuring.The fourth part analyzes the reasons and ways for the government to participate in debt restructuring.The fifth part analyzes the debt restructuring of Sanjiu Group from various capability indicators with Haiwang Bio as a comparative case.The sixth part is countermeasures,including recommendations for both government and business.The last part is the conclusion,including the case revelation and the lack of research in this paper.Compared with previous studies,the innovation of this paper is mainly to make the research target a listed company of state-owned enterprises,rather than the common research aimed at ST company,and involve the government to participate in debt restructuring.