Case Study On Restructuring And Reorganization Of Papermaking Enterprises

YJ Company is a subsidiary of Y provincial investment group,which is a state-owned holding company.Its main business is production and sale pulp,so far,the company has developing more than 20 years.Since 2011,the pulp market competition becomes more intensively,YJ company is effected by the market environment,coupling with the company's industry structure chaos,factors such as operating profit decline,YJ company's development get into trouble.Therefore,YJ Company's management decided to reform the restructuring,eliminate the company's internal problems,and help the company go out of difficulties,make the company can develop healthily.The starting point of this article is why dose YJ company restructuring,combining with related theories,the restructuring and reorganization of literature analysis and case study,the YJ company's restructuring plan and process carried on the detailed analysis and research.YJ Company's restructuring plan is establish a new subsidiary,make the bad assets from the company to the new subsidiary.This plan has two development goals,the first is to break through the development bottleneck to ensure the company's normal production and business operation;the second is IPO,to get more financing opportunities for the company,help the company growing up.According to the research and analysis,that YJ Company has many problems.Such as capital contribution defects,contingency potential risks,the restructuring and reorganization time improper,pollutant discharge is not up to standard,existing in the process of restructuring.YJ Company in the process of restructuring has solved the problems existing itselfFrom YJ companies own perspective,this restructuring and reorganization of the company are successful.Because after the restructuring and reorganization completed,YJ Company has optimized industrial structure,improved the company's assets and liabilities structure,the YJ Company is able to adapt to an increasingly competitive pulp market better.But,combining with the external environment,YJ Company's restructuring and reorganization process still exists defects.Due to the improper timing,YJ Company is affected by pulp market environment,after completion of the restructuring and reorganization process,YJ company did not achieve it's expected goals,caused IPO plans delay.YJ company has not fulfilled its goals after completion of the restructuring and reorganization.The other types of paper making enterprises in the restructuring,can draw lessons from YJ company's successful experience in the process of restructuring we need according to our own enterprise development needs reasonably design the restructuring plan.At the same time,enterprises should choice the right point in time,the restructuring and reorganization to avoid the same problems.YJ companys case,the restructuring and reorganization to the other of the same type paper making enterprise restructuring practice has certain guidance and reference significance.