*ST Liyuan Refining Company Debt Default Research-based On The Perspective Of Financial Deleverage Process Control

In the process of production and operation,enterprises usually raise funds from outside to meet their own needs.However,if the scale of corporate debt does not match the size of the company's assets and the accumulation of excessive debt,the company will face the risk of debt default if its own cash flow cannot cover the due debt when the corporate debt matures.With the implementation of the national financial deleveraging policy in 2015,entities are required to reduce the size of their debts.Corporate financing costs have risen,and it has been difficult to raise funds.Many companies in many industries have experienced problems with their capital chains,faced a lot of pressure on debt service,and a large number of corporate debt defaults have appeared in the market.They even face the risk of bankruptcy.This article uses ST Jilin Liyuan Precision Manufacturing Co.,Ltd.as an example of debt default.By studying the relevant theories about the causes of debt defaults and relief strategies at home and abroad,it forms the framework and analysis model of the paper.From the perspective of corporate cash flow control,the company's total net cash flow is greater than or equal to 0 as the criterion for judging the quality of corporate cash flow,and analyzes the financial status,investment status,and financing status of the case company to study * ST Jilin Liyuan Precision Manufacturing Co.,Ltd.the cause of the default of the debt,and propose a relief strategy for the company's debt default.Among them,the analysis of financial status includes the company's cash flow status,operating efficiency and profitability analysis;investment strategy analysis mainly analyzes the impact of corporate overinvestment on corporate debt default;debt financing analysis includes company financing efficiency,solvency and debt structure analysis.The relief strategies proposed in this article are:(1)Enhance corporate profitability and improve cash flow.(2)To avoid over-investment in light of its own development characteristics.(3)Reasonably arrange debt maturity and avoid short loans and long investments.(4)Improve corporate governance mechanisms and strengthen information disclosure management.