Commercial Bank In Bankruptcy Reorganization Research On Legal Issues Of Debt-to-equity

In the process of bankruptcy reorganization,the conversion of commercial bank debts into equity can be referred to as bank debt to equity in the reorganization process.Under the guidance of the market-oriented bankruptcy reform of "deleveraging and restructuring",the debt-to-equity swap of commercial Banks in the bankruptcy restructuring process has returned to people's vision as a new tool of debt adjustment.Due to the disconnection between legal policies and practice,the commercial Banks' debt-to-equity swap in the restructuring process fell into various difficulties,resulting in start-up difficulties,operation obstacles and exit weakness.However,the reason why the problem exists and is difficult to solve is different from the legal nature of the debt-for-equity swap implemented by commercial Banks in the restructuring process,and has direct connection with the guiding philosophy and basic principles.The debt-for-equity swap implemented by commercial Banks in the reorganization process is the overall distribution of the debt-for-equity swap holders and all new shareholders in the reorganization process after the enterprise enters the reorganization process.The principle of collective compensation and fair distribution should be adhered to.At the same time,in terms of guiding philosophy,we should adhere to the transformation premise and the restructuring goal of continuing operation,and the transformation direction should match the transformation from senior securities to junior securities.Due to the particularity of debt-for-equity conversion in the process of reorganization,in order to break the system bottleneck and barriers,on the one hand,we should improve the specific system of debt-for-equity conversion in the process of reorganization,on the other hand,we should clarify the application of article 87 of the enterprise bankruptcy law.In terms of perfecting the specific system,we should pay attention to clarifying the qualification conditions of restructuring and debt-for-equity swap,broaden the applicable path of restructuring to meet the need for more debt-for-equity swap situations,select evaluation methods based on debt-for-equity swap rather than the nature of the company,refine evaluation,and due diligence scope and content of capital verification institutions,etc.In clarifying article 87 of the enterprise bankruptcy law,we should pay attention to the principle of minimum,maximum benefit and absolute priority.In the process of operation,we should strengthen the protection of shareholders' rights and interests of the implementing institutions and clarify the specific supervision responsibilities of the bankruptcy administrator.In this regard,it is necessary to strengthen the risk isolation between commercial Banks and implementing institutions,interpret indirect share holding as a proxy relationship,and encourage implementing institutions to convert into preferred shareholders.In addition,the bankruptcy manager should supervise the enterprise to implement the debt-for-equity program and assist the debt-for-equity participant to fulfill the right of supervision.In terms of the way of exit,it is necessary to clear up the conflicts between relevant laws,especially the legal norms related to restructuring enterprises and commercial Banks.At the same time,it is necessary to explore compound and diversified exit modes,such as enriching the realization mode of single exit channel and transferring to more than two implementing agencies to spread risks.