Research On Debt-to-Equity Swap Problems In The Restructuring Of Z Company

With the slow growth of the economy,the macroeconomic structure has been adjusted.Some enterprises are faced with the decline of profit,the low turnover rate of accounts receivable,the fragile,fragile and high debt of the capital chain.Under the vicious circle,the entity is hindered.Economic development and economic wilting.The enterprise needs an effective way to reduce leverage,reduce financial pressure,and allow enterprises to survive the mid-cyclical operational difficulties.In 2016,the government led the debt-to-equity swap method to screen eligible debt-to-equity swap companies.In addition to the relevant policy provisions,when an asset management company acquires a non-performing loan,its price is calculated based on the original value of the asset value(in combination with the actual situation).When the equity is withdrawn,the company will be required to repurchase the equity of the asset management company as much as possible.Debt-to-equity swaps based on market-oriented methods require the market participants to follow the wishes and principles of the market.The convertible entity decides whether to convert shares and establish market-based prices,hoping to effectively reduce the excessive leverage of the enterprises,banks or other The financial risks of financial institutions and the financial risks of other corporate creditors have achieved the effect of mutual benefit and win-win for all parties involved in debt-to-equity swaps.This paper uses financial management,financial theory knowledge,through a large amount of information,literature and previous research,on the basis of this,analyzes the company's financial status in 2017,from the accounting data to determine that the asset-liability ratio is greater than 100%,The company has been insolvent and the losses are serious.The company should stop operating;Judging from financial management,the company became the first local government-led financing guarantee company at the end of 2014.It has obtained the AA credit rating certificate and won the title of “key enterprise”.It has certain corporate value and can seek certain reform methods.The company's insolvency problem,creating profits again,allowing the company to resume normal operations,and taking the market as the guide,proposed the Z company's debt-to-equity swap plan.In the further investigation of the company's assets and debts,a set of plans was designed.Under the intervention of local governments and third-party agencies,Z Company was assisted in locking debts,packaging assets to be managed by third parties,revitalizing stocks,looking for incrementals,etc.In order to make the company re-enter the normal operating state,the company's creditors' interests will be maximized and a win-win situation will be achieved.After evaluating the implementation of the Z company debt-to-equity swap plan,the ideal effect and social effect are obtained.The analysis of the company has certain problems and risks when choosing the debt-to-equity swap plan.At the same time,it puts forward some suggestions for improvement on the implementation of Z company debt restructuring.