Research On The Legal Issues Of Commercial Debt-to-equity Swaps

In the late 1990 s,our country many enterprise started to encounter debt problems causing by the highly leveraged,especially high debt ratio in some state-owned enterprise leading to difficult management.Banks ran into the loss of state-owned assets caused by the high non-performing assets at the same time.To reverse this situation,combined with the special situation of the economic development of our country,draw lessons from foreign successful experience,our government completed the policy debts into shares,successfully solved the problems of highly state-owned Banks non-performing assets and state-owned enterprise malignant circulation.In order to solve the problem such as high leverage caused by rapid economic development in the present stage,refer to policy debt turn of the last century in our country and other countries the successful experience of commercial debts into shares,our country enterprise actively promote the reform of the commercial debts into shares.I this paper,the legal issues of commercial debt-for-equity transfer in China are analyzed in detail in four parts.Specifically,the first part makes a conceptual definition of the issues to be studied in this paper through an overview of the commercial debt-for-equity swap.The second part analyzes the legislative practice of China's commercial debt-for-equity system and summarizes the problems in practice.In the third part,the paper compares the implementation of the commercial debt-for-equity swap between the Common Law and the Civil Law,and draws lessons from the practice.The fourth part,on the basis of summarizing the first three parts,propose the idea for completing the commercial debt-for-equity swap in our country.