Case Study On Bankruptcy Reorganization Of ~*st Xinyi

Since the bankruptcy reorganization was put forward in 2007,more and more enterprises have realized rebirth through bankruptcy reorganization.However,there are still many enterprises fail to get out of dilemma.In order ro research the consequences of bankruptcy reorganization and the factors affecting the effect of bankruptcy reorganization,this paper selects *ST Xinyi as the case,makes analysis of the cause,process,schemea,result and the reasons that led to such result of its bankruptcy reorganization.It’s found that after the reorganization of *ST Xinyi:On the legal aspect,the bankruptcy reorganization of *ST Xinyi is in the state of re-examination and the retrial conclusion which existes great uncertainty has not been formed;In terms of corporate governance,the conflict between investors and trong stock holder broke out,resulting in a struggle for control,and the corporate governance fell into chaos;In terms of operation,solvency has been improved,but it is not sustainable,and profitability and operating capacity have not been substantially improved.Further research shows that there are many reasons that made *ST Xinyi failed to achieve ideal restructuring effect and get out of the dilemma.In the court accepting the reorganization application stage,*ST Xinyi adopted a management mode that is not suitable for itself.In the stage of making,voting and approving the draft of restructuring plan,*ST Xinyi introduced investors with weak strength,the promoter’s equity adjustment plan seriously damaged the interests of the promoter,the creditor’s righ were not confirmed clearly and the business plan existed great uncertainty,in addition,the abuse of the power of compulsory approval by the courtl was the invisible "push hand" that led to unsatisfactory effect.In the operation stage,the company’s governance structure of *ST Xinyi was seriousweakness,which made the business decisions radical,leading to serious outflow of reorganization funds and affecting the reorganization performance.According to the analysis of the reorganization case of * ST Xinyi,it will give some enlightenment to other enterprises to carry out bankruptcy reorganization and improve the bankruptcy reorganization system,hoping to promote the smooth progress of enterprise bankruptcy reorganization and obtain ideal reorganization performance to a certain extent.