A Case Study On The Bankruptcy Reorganization Of HNA

In 2007,China promulgated the enterprise bankruptcy law of the people’s Republic of China.The law defines the contents of bankruptcy reorganization for the first time.Enterprise bankruptcy is no longer limited to liquidation and reconciliation.As a new procedure in the bankruptcy law,bankruptcy reorganization can not only preserve the debtor’s corporate status,but also resolve the debt crisis through the all-round reorganization of the bankrupt enterprise,so that the enterprise can unload the burden and go to the battle light,and realize the rescue and rebirth of the enterprise.COVID-19,which broke out in 2020,brought a fatal blow to the development of the global economy.The recession of the world economy directly worsened the living environment of a large number of enterprises,and led enterprises to seek bankruptcy protection.In recent years,due to the economic downturn at home and abroad and the defects of enterprise internal control,HNA Group once fell into a liquidity crisis.Influenced by COVID-19,HNA filed for bankruptcy reorganization process in January 29,2021.On October 31,2021,according to the civil ruling,Hainan Higher People’s court made a final ruling on HNA’s bankruptcy reorganization plan.On April 24,2022,hna announced the completion of its restructuring plan and obtained a court ruling.Therefore,this article carries on the case study to our country aviation industry giant one of HNA Group bankruptcy reorganization,according to the company early warning theory,the internal control theory,the economic man hypothesis theory,using the method of literature study,case analysis,qualitative and quantitative analysis.First of all,it introduces the case of HNA’s bankruptcy reorganization,including the background of HNA’s bankruptcy reorganization,the process of bankruptcy reorganization,and the problems existing in its operation.Secondly,it analyzes the case of HNA’s bankruptcy reorganization,including the reasons for HNA’s bankruptcy,the principles of HNA’s own reorganization plan,the analysis of the effect of HNA’s reorganization,and the re-examination of the bankruptcy risk,and point out the problems in the reorganization.Finally,according to the above-mentioned analysis,we can get corresponding enlightenment: to protect the main body status of passenger transport and reduce exchange loss;to guard against the greedy humanity in diversification strategy and to keep strategic nature;to attach importance to the management of merger and acquisition process,strengthen industry coordination;establish cash flow financial ratio early-warning model;reduce leverage and improve equity capital,optimize capital structure;strengthen checks and balances on insider power,improve corporate governance;strengthen enterprise risk management,setting up a risk reserve fund.Through the case study of the bankruptcy reorganization of HNA,I hope to ring the alarm bell for other operators,take the bankruptcy reorganization of HNA as a lesson,seriously treat the company’s operation,to ensure the sustainable and healthy development of the company.