Analysis On The Path And Effect Of Bankruptcy Reorganization Under The Mode Of Financial Investor And Industrial Investor

With the upgrading of China’s economic structure,the constraint and norm of the economic system in all industries have been strengthened.Listed companies are an extremely important part of economic development,and they are facing more and more pressure and competition.Some listed companies become insolvent and forced to delist due to their business and financial difficulties.In order to save social resources and stabilize economic order,the bankruptcy reorganization system was introduced into the Bankruptcy Law in 2007,which provides a new way for listed companies in deep trouble to be reborn.According to the Bankruptcy Law,for some listed companies that are in financial distress but still have the remaining operating value overall,in order to save resources,they can choose to save the enterprise through bankruptcy reorganization.Due to the different conditions of each enterprise entering bankruptcy reorganization,the reorganization modes of existing bankruptcy reorganization cases in China are also different.For example,Fangzheng Group adopts the mode of "sale reorganization + property right trust",and Yanhu adopts the mode of divestiture of loss assets and increase the share capital.Liuhua choose the mode of adjusting the asset structure,the ownership structure and business plan.Through the analysis of the bankruptcy reorganization of Lifan Technology,this paper focuses on exploring the path and effect of the reorganization under the mode of "financial investors + industrial investors".Based on the theory of operating value,stakeholder theory and signal transmission theory,this paper first introduces the basic information of the company and its industry background,then analyzes the reasons for its bankruptcy reorganization and the path of reorganization,and focuses on the analysis of the mode of financial investors and industrial investors introduced by it.Finally,by using the event study to calculate and analyze its cumulative abnormal return and analyze the trend of its stock price before and after the reorganization to analyze the market effect of the reorganization.By calculating the solvency and other financial indicators of Lifan Technology before and after the reorganization,analyze the interests of various stakeholders involved in the reorganization,the following conclusions and enlightenment are drawn:First of all,the selection of reorganization investors should be market-oriented.In the case of the bankruptcy reorganization of Lifan Technology,the local court(namely Chongqing Fifth Intermediate People’s Court)issued a public announcement to recruit investors,without too much government intervention;Secondly,in terms of the bankruptcy reorganization plan,this paper believes that there is no best bankruptcy reorganization plan,only the most suitable plan for enterprises.The innovation of Lifan’s bankruptcy reorganization plan lies in that it adopts the mode of "financial investors + industrial investors".Liangjiang Fund Company as the financial investor and Geely Megtier as the industrial investor jointly become the reorganization investors in the bankruptcy reorganization of Lifan Technology.It can not only bring cash flow to the enterprise to repay debts and solve the problem of capital chain break through financial investors,but also introduce new business,technology and business model to Lifan Technology through industrial investors,upgrade its main business and promote the process of bankruptcy reorganization of Lifan Technology.It can bring new driving force for Lifan Technology after the completion of bankruptcy reorganization;Finally,in order to complete the reorganization,the plan must be coordinated to protect the interests of all stakeholders.Only when all stakeholders reach a win-win situation,the reorganization plan can be successful.The conclusion of this paper has significant meanings.On the one hand,it can supplement the theoretical framework of bankruptcy reorganization and the "financial investor + industrial investor" reorganization mode.On the other hand,it can provide some experience for subsequent enterprises in the same situation,and help more enterprises out of trouble.