Research On The Causes Of Bankruptcy Reorganization Of Shandong Dahai Group Under The Background Of Guarantee Circle

With the rapid development of China's economy and the in-depth implementation of reform and opening up,Shandong private enterprises have ushered in rapid development.Many Shandong private enterprises have been selected into the top 500 private enterprises in China.However,from 2017,Shandong Dahai Group and Jinmao Textile and Chemical Group,Tianxin Group,Shengtong Shares,Yongtai Group and many other private 500 companies filed for bankruptcy and reorganization,broke negative news of credit or was liquidated by bankruptcy.All of the above companies were involved in the guarantee circle and were seriously affected by the risk of the guarantee circle.The risk of Shandong Dongying guarantee circle and the status quo of Shandong private enterprise management have received much attention.Shandong is a traditional industrial province.The industry of Shandong private enterprises is concentrated in traditional industries such as chemical,metallurgy,textile,machinery,etc.,and the industrial level is not high.In the period of rapid economic development,Shandong private entrepreneurs who are known for their hardship,hard work,and enthusiasm are launching projects,expanding production capacity,and entering into new business areas to implement diversification strategies.Asset size and operating income of large and medium-sized private enterprises.Both have increased significantly,and the number of Shandong private enterprises entering the top 500 private enterprises in China has increased year by year.However,the debt ratio of Shandong private enterprises that has developed in the development process by relying on traditional models such as spreading and expanding the scale has risen sharply.Due to the non-standard management of private enterprises and difficulties in financing,some enterprises have solved through mutual insurance or joint guarantee.With the financing problem,with the increase of enterprises in the guarantee chain and the intersection of the guarantee chain,the guarantee circle is gradually formed.Due to the bad management of some enterprises on the guarantee circle and the break of the capital chain,the risk of Shandong Dongying guarantee circle is gradually exposed,and the guarantee circle is "The heating" has evolved into a "fire-burning company",which has led to a large-scale risk event.This paper firstly learns and summarizes the relevant theories and research results of private enterprises,guarantee circle risks,corporate bankruptcy reorganization,etc.At the same time,Shandong Dahai Group Co.,Ltd.,which went to bankruptcy and reorganization in November 2018 due to the risk of the guarantee circle,was limited.For example,the company conducts a comprehensive analysis of the external and self-causes of bankruptcy and reorganization in the context of the risk of the guarantee circle,pointing out the problems of blind diversification,excessive financing,and irregular management and management in Shandong private enterprises.The bad tendency of financing the business purpose of the enterprise.Finally,combined with the current government's policy of bail-out for private enterprises,it is proposed that private enterprises avoid bankruptcy and reorganization measures and management countermeasures.It is hoped that Shandong private enterprises,especially private enterprises with similar situations in the Dahai Group,will learn from their own management.In-depth analysis,find common problems with the reasons for the bankruptcy and restructuring of the Dahai group,avoid repeating the mistakes of the Dahai group going to bankruptcy and reorganization,and provide certain enlightenment to other private enterprises.The main innovation of the article is to analyze the typical cases,start from the management and strategy formulation of private enterprises,analyze the reasons why private enterprises are involved in the guarantee circle step by step,and point out the reasons for the private enterprises to go bankrupt and restructure under the risk of guarantee circle and the risk of guarantee circle.Great destructive poxwer to the enterprise.In addition,the article points out the tendency of financing the business purpose in the process of some private enterprises.The main features are:implicit control of multiple affiliates,numerous related transactions,and the existence of financing for financing purposes.Finally,under the current background of the new economic normal and the government's proposal to support the development of private enterprises and prevent financial risks,it is also the main research conclusions of the paper to propose self-adjustment measures for private enterprises facing difficulties,including focusing on the main business.Cultivate core competitiveness;improve corporate governance mechanism,establish a modern corporate management system;establish a financial management system with working capital management as the core;use government support measures such as bailout funds to solve liquidity problems,reduce the risk of guarantee circles,and increase cooperation with state-owned enterprises Strength and seek strategic partners and so on.