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

In recent years,China’s supply-side structural reform has started."Bankruptcy reorganization" and "debt-to-equity swap" have become two key words widely concerned by all sectors of the society because of their functions of reducing corporate leverage ratio,reducing corporate debt burden and restoring corporate operating ability.In October 2016,the State Council issued the Opinions on Proactively yet Prudently Lowering the Corporate Leverage Ratio,clarifying the main task of supply-side structural reform,which is to reduce the corporate leverage ratio in a market-oriented and law-based manner.At the same time,the State Council issued its appendix,Guiding Opinions on Debt-to-Equity Switching of Marketized Banks,to guide the general idea of debt-to-equity swaps,making it clear that debt-to-equity swaps should be carried out in accordance with the principles and methods of the rule of law and market.The connotation and functions of market-oriented debt-to-equity swaps have been formally confirmed in the form of documents issued by the State Council.The issue of the opinion guides the debt-to-equity swap in the bankruptcy restructuring process from a new direction,and the debt-to-equity swap in the bankruptcy restructuring process has become a hot topic in the theoretical and practical circles at present.However,in the bankruptcy reorganization process,how to carry out debt-to-equity swap,how to maximize the debt-to-equity return function,there are still many problems to be solved.Based on the above background,this paper chooses to study the related legal issues of debt to equity in the bankruptcy reorganization process.This paper is divided into four parts: the first part,a clear definition of the concept of the bankruptcy reorganization and debt convertible,characteristics,the analysis of debt turn in the relationship between the creditor’s rights and equity,clear in the bankruptcy reorganization procedure debt-to-equity relations with marketization debts into shares,in defining the important basic theory,which leads to the bankruptcy reorganization procedure in the implementation of the significance of debts into shares,The second part,starting from the relevant legal provisions and the typical cases in the past two years,analyzes the legislative and practical status quo related to the debt-to-equity swap in the bankruptcy reorganization process.In the third part,through sorting out the legal provisions related to debt-to-equity swap in the bankruptcy restructuring process,the specific implementation of debt-to-equity swap in the bankruptcy restructuring process is analyzed,and the existing problems in the implementation of debt-to-equity swap in the bankruptcy restructuring process in China are pointed out,such as the lack of legal provisions and the legal conflicts in the specific implementation of debt-to-equity swap.The fourth part,on the basis of analyzing the problems,puts forward the countermeasures to improve the debt-to-equity conversion in the bankruptcy reorganization process of our country.The debt-tor-equity program implemented in the bankruptcy restructuring process can help enterprises resolve the crisis and ushered in the rebirth.It has great value for promoting the sustainable development of China’s economy and social stability and prosperity.Therefore,we need to continue to explore in practice,improve its system and implementation,and give better play to its role.