Application Research Of Market-Oriented Debt-to-Equity Swap In Enterprise Bankruptcy Reorganization

In recent years,China is in a critical period of transformation between old and new kinetic energy,and the downward pressure on economic growth is increasing.Many domestic enterprises are facing the dilemma of declining profitability and rising debt risk.In this regard,the Central Economic Work Conference proposed "cutting overcapacity,reducing excess inventory,deleveraging,lowering costs,and strengthening areas of weakness",and took "deleveraging" as the key deployment task.Then,the State Council issued "The Guiding Opinions on Actively and Steadily Reducing the Leverage Ratio of Enterprises" and its annex "The Guiding Opinions on Debt-to-equity Swap of Market-oriented Banks".At this time,market-oriented debt-to-equity swap can also help to achieve the goal of "deleveraging" in the supply-side reform.In this context,Chongqing Iron & Steel Company Limited,facing serious financial difficulties,took the lead in applying market-oriented debt-to-equity swap to the "particularly significant and unprecedented" bankruptcy reorganization of enterprises in the whole iron and steel industry,and achieved certain results.Taking Chongqing Iron & Steel Company Limited as the case object,this paper studies how the market-oriented debt-to-equity swap is applied in the enterprise bankruptcy reorganization.Firstly,it combs the literature,concepts and theories related to bankruptcy reorganization and debt-to-equity swap.Secondly,after understanding the application background of market-oriented debt-to-equity swap in the bankruptcy reorganization of Chongqing Iron & Steel Company Limited,this paper deeply analyzes the application motivation,application scheme,application benefit and existing problems of market-oriented debt-to-equity swap in the bankruptcy reorganization of Chongqing Iron & Steel Company Limited,and comes to the following conclusions: from the perspective of application motivation,it is a choice under the influence of industry,policy and society from the financial performance of enterprises;From the perspective of application scheme,the formulation and design of the scheme is the result of multi-party game,and fully reflects the characteristics of marketization;From the perspective of application benefits,it has brought remarkable market benefits,financial benefits and social benefits to Chongqing Iron & Steel Company Limited;From the perspective of the problems existing in the application,there are three problems of the composition of "open stock and real debt" in the trading model,the low degree of participation of creditors such as financial institutions and the single exit channel of market-oriented debt-to-equity swap,which still need to be noticed and improved.Finally,it summarizes the Enlightenment of the application of market-oriented debt-to-equity swap in the bankruptcy reorganization of Chongqing Iron & Steel Company Limited,and puts forward corresponding optimization suggestions for the existing problems,in order to provide reference for other enterprises that apply market-oriented debt-to-equity swap to bankruptcy reorganization.