A Case Analysis On Default Of "11 CHAO RI Bond"

In recent years,with the expanding issuance,corporate bond has become one of the most important bonds in China's bond market.However,corporate bond defaults have also come into being,showing a significant acceleration trend and even spreading to listed companies.If a large number of listed companies that is the most promising leader in various industries default on bonds,it will have a certain negative impact on the Chinese economy,and it will also be likely to cause turmoil in the capital market.Therefore,we should attach great importance to the bond default of listed companies.The "11 CHAO RI Bound" is the first listed corporate bond in China with substantial default.With self-evident historical position in the bond market,it has very important research significance and reference value.Starting with the "11 C.R.Bond" default,mainly this paper analyzed the two themes of bond default reason,bond default claim,and got the following conclusions.First,the reasons of“11 C.R.Bond" default lie in economic downturn in photovoltaic industry,bond expansion against the trend and the failure of the bond emergency plan.Secondly,“11 C.R.Bond" default reflects such problems as the lack of supervision system and the incompetence of intermediaries,these problems are the secondary-cause of bond default.Thirdly,it is reasonable to claim compensation through bankruptcy reorganization in the case that the company has been insolvent.Fourthly,C.R.Company's bankruptcy reorganization needs to meet three basic conditions,including the original real controller ceding control power,C.R.Company achieving"Shell Protection",and all parties recognizing the reorganization plan.Fifthly,the participation of GCL and Great Wall AMC is the key factor for the success of the bankruptcy reorganization.Lastly,the bankruptcy reorganization has brought good economic and social benefits.Based on the above conclusions,this paper drew inspiration from three aspects:issuer,bond market supervision,and bankruptcy reorganization of listed companies In terms of issuers,enterprises should be wary of counter-trend bond expansion,strengthen cash flow management,and at the same time establish a sound internal control mechanism to improve the company governance structure.In terms of the bond market supervision,the supervision department should strengthen the responsibility of intermediaries,refine the rules of information disclosure and follow the principle of classification.In respect of the bankruptcy reorganization,listed companies should carefully select investors,and at the same time enrich the means of debt repayment combining the characteristics of the capital market.This paper consists of five chapters.The first chapter is the introduction.The second one is the theoretical basis and literature review.The third chapter presents case introduction,including C.R.Company and its industry,as well as related information about "11 C.R.Bond".The fourth chapter is the case analysis,which analyzed reasons for bond default,bond default claim.The last chapter is the case conclusion and enlightenment,summarizing research conclusions and drawing relevant inspiration.