Research On Legal Issues Of Debt-to-Equity Swap In Bankruptcy Procedure

It has been five years since the State Council promulgated two "Guiding Opinions" in 2016 to kick off a new round of debt-to-equity swaps,and policy-based debt-to-equity swaps have outdated.This article focuses on the new round of commercial debt-to-equity swaps,sorting out and studying the legal issues that have emerged during the development of marketing and rule of law.The first part of the article is to introduce the relevant theories of the bankruptcy procedure and clarify the legal basis of the bankruptcy debt-to-equity swap procedure and grasp the direction of the debt-to-equity swap.First of all,clarify the bankruptcy procedures applicable to debt-to-equity swaps,and understand the relevant theory of bankruptcy procedures;in the implementation stage of debt-to-equity swaps,according to the "Company Law","Company Law Interpretation","Corporate Debt-to-Equity Registration Management Measures" and "Enterprise Accounting Standards" ”The relevant regulations clarify the legal basis for debt-to-equity swaps.The second part of the article combines a series of successful debt-to-equity swaps in the form of cases and analyzes the debt-to-equity swap process in bankruptcy procedures.In this part,analyze the participating entities involved in the debt-to-equity swap process and the specific implementation plans of the debt-to-equity swap,clarify the rights and obligations of each participant;and review the innovations in the current debt-to-equity swap implementation process Perform analysis.The third part of the article refers to the legal dilemma of debt-to-equity swaps in the emergence of bankruptcy proceedings.Debt-to-equity swaps in bankruptcy proceedings will not be accomplished overnight,requiring a lot of human,material,and financial input,and they will not necessarily succeed.It mainly includes two dilemmas.One is that the conversion path at this stage is single,or is it limited to converting debts into equity in the reorganized company;the other is that the parties involved in the debt-to-equity swap have conflicts of interest,which make the debt-to-equity swap impossible.Smooth progress hinders the regeneration of bankrupt companies.The fourth part of the article analyzes the legal dilemma of debt-to-equity swaps pointed out in the previous article,finds out the causes of the problems and makes appropriate innovations when solving the existing problems,and puts forward relevant suggestions on the corresponding legal problems.They are innovating market-oriented debt-to-equity swaps,balancing conflicts of interest in debt-to-equity swaps,and improving information disclosure and supervision mechanisms in debt-to-equity swaps.Among them,in the part of innovative market-oriented debt-to-equity swaps,it is proposed to implement debt-to-equity swaps through innovative debt-to-equity swaps,which not only enables creditors’ claims to be repaid more favorably,but also reduces the debtors’ pressure on debt-to-equity swaps from creditors..