Research On The Default Of Kaidi ECO Debt

In recent years,the government has actively promoted the macro-economic policy of deleveraging,increased the supervision of corporate lending,increased the risk of corporate debt default,many enterprises have a large-scale debt default,some enterprises shut down or even bankruptcy.At the macro level,the downward pressure on the overall economic situation has increased.At the same time,under the influence of the national economic policy of deleveraging and structural adjustment,the industry risk has increased.At the micro level,due to the rising cost of raw materials,some enterprises' cash flow has been deteriorating,and the risk of debt default has been increasing.On the whole,the debt default of private enterprises is particularly serious.In 2019,42 new default enterprises were added,34 of which are private enterprises,accounting for 85%;in 2019,there were 177 bond defaults,with a total default amount of RMB 143528 million.The defaulting enterprises are mainly concentrated in capital intensive fields,such as construction industry,non-ferrous metal industry,real estate industry,new energy industry,etc.In the field of new energy,the large-scale debt default cases of Kaidi ecology have attracted extensive attention of the society.Kaidi ecological company,full name of Kaidi Ecological Environment Technology Co.,Ltd.,was originally the leading leader in the field of biomass power generation.The chairman of the company,namely the actual controller,is Chen Yilong.In the first half of 2017,Kaidi ecological flat thunder released the announcement that "11 Kaidi MtN1" could not be cashed when it was due.Since then,it has officially opened the scene of default of the company's debt.According to the disclosure,the company's net assets are 1914.2074 million yuan,the total default debt is 17366.532 million yuan,and the total default debt is 9.07 times of the company's net assets.The rating of corporate bonds has been lowered to level C,the financing channels of enterprises have been closed,and a large number of lawsuits and arbitration cases have been involved due to the arrears of employees' wages,fuel payments and illegal disclosure of financial information.At present,the power plant has been shut down on a large scale,the company's bank account has been frozen,and executives have considered selling core assets at a low price,so the company has basically been unable to operate normally.This paper takes Kaidi ecological debt default as an example to introduce the corporate debt default event in detail.First of all,this paper introduces the research results of domestic and foreign scholars on corporate debt default,and introduces several theories related to the research content of this paper.Secondly,it briefly introduces the main development process of Kaidi ecology,the current business situation,the company's executives and the main business advantages,introduces the process of the company's asset restructuring in detail,and comprehensivelyreviews the process of corporate bond default.Then,it analyzes the internal and external factors of debt default of Kaidi ecological company in detail,introduces the influence of national deleveraging policy on high debt enterprises,and the industry factors of high cost in the field of biomass power generation.Because of the high cost of management,the strategy of the company,and the occupation of non operating funds by the major shareholders.This paper analyzes the causes of large-scale debt default from internal and external aspects.Finally,the author puts forward corresponding countermeasures and suggestions respectively,and concludes that the enterprise should formulate strategic objectives that are in line with the actual situation,rationally expand financing in combination with the characteristics of the industry and itself,introduce advanced technology,and continuously improve production capacity;at the same time,constantly improve the level of internal control of the enterprise,and improve management efficiency.This paper deeply studies and discusses how to get out of the debt default predicament and how to avoid the debt default situation,hoping to provide reference for the managers of each company.