A Study On The Model Of Business Of Restructuring Enterprises In Troubles Of Asset Management Companies

China is in the critical stage of supply-side structural reform at present,while the economic growth slows down,the prices of bulk commodities are cut,the levels of real companies' profit decrease,the growth rate of fiscal revenue is reduced and the probability of economic risks rises simultaneously as well as some companies have encountered operational difficulties,which result in the increasing number of enterprises in troubles,therefore,it is an important task to resolve over-capacities steadily and dispose of enterprises in troubles properly in this stage of reform.The executive meeting of the State Council clearly put forward the requirement of “supporting banks to expedite the disposal of non-performing loans” in early 2016,expediting the disposal of non-performing assets is of great significance to the stable operation of China's financial industry and the long-term development of China's economy.Nowadays,China's economic structure,the operating environment of enterprises,the background of non-performing assets of the banks and the load of debt of governments at all levels are quite different from the situation in the early 21 st century,and it is difficult to repeat the historical path to dispose non-performing assets.Therefore,it has become a major challenge for China's financial supply-side structural reform for how to dispose non-performing assets in quick and effective ways.Asset management companies are financial institutions specializing in the disposal of non-performing assets.Restructuring enterprises in troubles is an efficient way to dispose non-performing assets.The business of restructuring enterprises in troubles will have broad development space with the acceleration of China's supply-side structural reforms.Asset management companies,as important force in participating in restructuring enterprises in troubles in the market,have initially possessed the ability to restructure enterprises in troubles by means of market-oriented and legal means such as merger and reorganization,bankruptcy and reorganization for a long time,however,their models of business are still immature and capabilities of business still have obvious shortcomings,which result in the low level of participation in the restructuring market and the number of restructuring projects that they dominate the operations and implement successfully is still small.At present,the relative lag of the development of professional investment institutions has become an important obstacle to the implementation of the projects of domestic restructuring enterprises in troubles.Asset management companies are facing multiple challenges both from inside and outside of improving the level of business of restructuring enterprises in troubles and transforming into the core competitiveness of future development.Under the guidance of the relevant theories of corporate restructuring,this thesis takes the case of the participation of asset management companies in the restructuring of HN Corporation,the largest coal enterprise in east China,and analyzes the problems of restructuring business for asset management companies including imperfect policies,rigid thinking of investment,insufficient capabilities of management,asymmetry of information,uncertain model of business and so on comprehensively.It proposes that under the current environment of policy,asset management companies should use the thinking of investment banking as well as a variety of financial means flexibly including directional capital reduction,equity replacement,private placement,acquisition of non-performing assets and market-oriented debt for equity swap based on the specific situation of the enterprises in troubles,moreover,use a combination of the model of business comprehensively such as restructuring of debt,asset,equity,debt for equity swap,merger and acquisition,additional investment,re-habilitation,restructuring consultants an so on to implement restructuring of enterprises in troubles.The study of this thesis is beneficial for asset management companies to improve the level of business of restructuring enterprises in troubles and cultivate new growth poles.It can help enterprises in troubles to eliminate or alleviate their own debt crisis,activate inefficient operating assets and restore normal production and operation as well as debt-paying ability,which will also be conducive to dispose the enterprises in troubles properly and contribute to China's supply-side structural reform.