Case Analysis Of Bankruptcy Reorganization Carried Out By *ST HaiLong

On June 1,2007,China revised the enterprise bankruptcy law and introduced the bankruptcy reorganization system,providing a new option for listed companies on the verge of bankruptcy.Today,for endangered enterprises,bankruptcy reorganization has been regarded as the most important way to save themselves.However,risks always coexist with opportunities.The reorganization plan is the core part of the bankruptcy process.However,the reorganization plans of most listed companies are uniform,and there are situations that damage the interests of investors to varying degrees.In addition,the bankruptcy reorganization takes a long time and the procedure is complex.Whether it is successful or not is highly uncertain.If the enterprise fails,it will lead to waste of resources during the reorganization period,lower creditor liquidation rate,and harmful consequences such as delisting to the interests of the original shareholders.Thus,the opportunities and risks of bankruptcy reorganization coexist.Therefore,how to make the enterprise really out of the woods,so that the restructuring process can really help the rebirth of the enterprise has become a subject which worth investigating.In recent years,scholars have studied bankruptcy reorganization from several aspects,including the choice of bankruptcy mode,reorganization mode,reorganization value evaluation and corporate performance after reorganization.However,there is a lack of research on the characteristics of bankruptcy reorganization plan.This field is like a virgin academic field waiting for many scholars to explore and develop.As one of the ten typical cases designated by People's Republic of China Supreme Court,the characteristics of *ST Hailong bankruptcy reorganization case is worthy of studying.Therefore,in order to make up for the gap in the field of bankruptcy reorganization research,this paper selected *ST Hailong bankruptcy reorganization as study object.The theoretical significance of this paper mainly includes two aspects: one is to help sort out and distinguish the relevant concepts;the other is to help expand the research field of bankruptcy reorganization and enrich the relevant content of bankruptcy reorganization.The practical significance of this paper has two points: one is to help design innovative reorganization scheme;the other is to accumulate experience and give inspiration for listed companies which are willing to implement bankruptcy reorganization.In this paper,literature review method and case analysis method are combined to use to study whether the reorganization procedure can help enterprises rebirth and how to make better use of reorganization procedure to help enterprises rebirth around the process and results of * ST Hailong bankruptcy reorganization.This paper is divided into six parts.The first part mainly introduces the research background and meaning of this paper,and reviews the existing literature on bankruptcy reorganization.The first part also introduces the research content and research methods,and shows the basic framework of this paper.The second part defines the concept of bankruptcy reorganization.At the same time,it summarizes the motivation of bankruptcy reorganization,the basic procedure and program content of bankruptcy reorganization,the evaluation method of bankruptcy reorganization effect and the theoretical basis that may be used in bankruptcy reorganization scheme,and provides theoretical support for the follow-up of this paper.The third part,the overall introduction of *ST Hailong company,introduces the *ST Hailong bankruptcy restructuring motivation,basic procedures and specific plans.The third part,the overall introduction of *ST Hailong company,introduces the *ST Hailong bankruptcy restructuring motivation,basic procedures and specific plans.The fourth part analyzes *ST Hailong bankruptcy reorganization program characteristics and reorganization results.This part extracts the four main characteristics of *ST Hailong restructuring plan and uses the financial index method and event study method to evaluate the financial performance and market response after reorganization.Based on the previous research,the fifth part elaborates and demonstrates the conclusion,experience and inspiration of * ST Hailong bankruptcy reorganization through a comprehensive analysis of the case;The sixth part is the conclusion.This paper extracts the four main characteristics of *ST Hailong restructuring plan,respectively for the government to provide guidance and help,the comprehensive use of a variety of payment methods,detailed operation plan and Mother and subsidiary companies are reorganized respectively.This paper believes that all creditors of *ST Hailong have been satisfied with the amount of payment by implementing bankruptcy restruction.The introduction of the strength restruction party avoided the loss of state-owned assets and provided a broader resource platform.In addition,for *ST Hailong restructuring performance,this paper believes that after bankruptcy restructuring,short-term market reaction of *ST Hailong is good but the solvency and development ability have not been significantly improved.At last,this paper has drawn three conclusions: restructuring enterprises should focus on resources to develop the main advantages of the business,bankruptcy reorganization can protect interest of stakeholdedrs and carefully select the restructuring side contribute to finish bankruptcy reorganization In view of the characteristics of *ST Hailong restructuring,this paper puts forward three enlightenments to help other listed companies which are willing to bankruptcy reorganization : seek judicial help and government support,draw up a specific plan for *ST Hailong,and consider reorganization scheme of companies comprehensively.