Study On Legal Issues Of Debt-to-Equity Swap In Enterprise Bankruptcy Reorganization

For bankrupt enterprises,bankruptcy reorganization can help them temporarily out of the immediate financial difficulties,so that enterprises out of financial difficulties,to start again.Debt-for-equity swap,in fact,converts the debts of debt enterprises into equity,which can not only inject new impetus into the national economic development,but also protect the interests of all creditors to the maximum extent.But due to the current law provisions of the debt-to-equity swap is too principle,in the practice of the debt-to-equity swap enterprises selected conditions,the parties how to realize the maximum protection to the extent of the obligee’s right,what kind of local government and the courts should play a role,there is some co ntro versy,and many ot her pro blems at t he same t ime no t reaso nable implementation of debt-to-equity swap,not only harm the interests of creditors,or has violated the energy for the development of national economy in the first place.How to correctly understand and grasp the conditions of enterprise selection,protection and restriction of creditor’s rights and the positioning of local governments and courts from the theoretical and legal aspects of debt-for-equity conversion in enterprise bankruptcy reorganization? This paper studies the problems related to debt-for-equity conversion in enterprise bankruptcy reorganization through theoretical and case analysis.Starting from the analysis of the basic theory of debt-to-equity swap,this paper reviews the historical experience of debt-to-equity swap,sorts out the legal basis of debt-to-equity swap,analyzes the basic requirements of debt-to-equity swap,and standardizes the operation process.This paper introduces the conflicts and contradictions between ordinary creditor’s rights and secured creditors in judicial practice through cases,summarizes the current problems and causes of debt-for-equity rights protection,and analyzes the problems of government’s compulsory intervention and court’s compulsory approval in the process of debt-for-equity exchange by referring to various legal documents.At last,the paper puts forward some Suggestions on debt-for-equity swap in bankruptcy reorganization from the perspective of entity and procedure.Strengthen the protection of creditor’s rights,especially bank’s creditor’s rights by standardizing the content and way of the plan in the reorganization process.By amending laws and regulations to regulate the administrative power of local governments in debt-for-equity swap,the positioning of local governments in debt-for-equity swap is clarified.When reviewing the reorganization plan,the court should take full consideration of the business potential and the opinions of creditors in addition to the plan itself.Meanwhile,it should also take into account social responsibilities and exercise the right of compulsory approval with caution.Determine the applicable standards for the refactoring process to prevent it from being restricted or abused.