Case Study On How To Graft Advantages To Break Through Financial Difficulties In The Bankruptcy And Reorganization Of Shenyang Machine Tool Co.,Ltd

Today,the market competition is more and more fierce.Many state-owned enterprises are facing financial difficulties due to their own system problems,historical burden problems,lack of core technology and so on,and some even go to bankruptcy and reorganization.But bankruptcy reorganization is only a legal procedure,how to get out of financial difficulties through bankruptcy reorganization is the focus of our financial managers.The enterprise bankruptcy law of the People's Republic of China(hereinafter referred to as the new bankruptcy law)comes into force on June 1,2007,in which bankruptcy reorganization is an important procedure in the new bankruptcy law.Enterprises can use this procedure to get out of financial difficulties and get new life.However,there are many problems in the implementation of the bankruptcy reorganization plan,such as how to meet the interests of stakeholders,how to realize the divestiture of non-performing assets,debt repayment,new capital injection,strategic transformation of enterprises and so on.Due to the limitations of the enterprise itself,it is often unable to solve the above problems.Therefore,how to solve the above problems in the process of bankruptcy reorganization of listed companies has always been the research object of Chinese and foreign scholars.This paper combs the relevant literature and studies the relevant theories.Taking the case of Shenyang Machine Tool Co.,Ltd.(hereinafter referred to as Shenyang Machine Tool)bankruptcy reorganization as the research object,it focuses on how Shenyang machine tool can get out of the financial predicament by grafting the external advantages.From the research,we can find that Shenyang machine tool mainly grafts external advantages through four aspects: grafting strategic investor resource advantage to complete debt restructuring,grafting parent company capital advantage to complete non-performing assets stripping,grafting government background advantage to complete major asset restructuring,grafting market mechanism to complete strategic restructuring.Through the analysis of the above four aspects,we can know that only under the joint action of the resource support of the parentcompany,the central coordination of the government and the adjustment of the market-oriented mechanism,can Shenyang machine tool complete the bankruptcy reorganization in just four months,breaking through the financial difficulties.