Research On Legal Issues Of Debt To Equity Swap Of Commercial Banks In Bankruptcy Reorganization

In the process of the development of the new normal economy,many enterprises encountered a serious debt crisis while undergoing transformation,leading to the bankruptcy reorganization process.Bankruptcy reorganization is an important means to improve business difficulties and help enterprises rebuild.In order to reduce the leverage ratio of enterprises,the State Council issued the opinions of the State Council on actively and steadily reducing the leverage ratio of enterprises and the guiding opinions on the conversion of creditor’s rights into equity of marketoriented banks in 2016 to promote market-oriented debt to equity conversion.As the most important creditor,the market-oriented conversion of commercial banks is the key measure of this round of debt to equity conversion.The combination of bankruptcy reorganization and bank debt to equity swap is not only conducive to alleviate the debt crisis of restructured enterprises and improve the success rate of reorganization,but also help reduce the non-performing loan rate of commercial banks,which can be described as killing two birds with one stone.However,due to the imperfect system of converting the creditor’s rights of commercial banks into equity under the bankruptcy reorganization procedure,there are many legal problems in the operation process that need to be solved urgently.Based on the above background,this paper first introduces the basic theory of debt to equity swap of commercial banks in bankruptcy reorganization as the starting point,and then analyzes several legal problems faced by commercial banks in debt to equity swap under the reorganization procedure,including the legal feasibility of debt to equity swap of commercial banks in bankruptcy reorganization,the target enterprise and the scope of creditor’s rights,the specific implementation,the formulation,voting and approval of the scheme,and the withdrawal of equity after equity swap.Then the article analyzes the legal system of bank debt to equity swap in the bankruptcy reorganization of the United States and Japan,and summarizes the enlightenment to China.Finally,be aimed at above problems,this paper puts forward corresponding countermeasures,including adhering to the principles of marketization and legalization,clarifying the applicable conditions of debt to equity swap of commercial banks in bankruptcy reorganization,improving the price evaluation mechanism of debt to equity swap of commercial banks in bankruptcy reorganization,improving the voting and approval procedures of debt to equity swap of commercial banks in bankruptcy reorganization,innovating the exit mode of debt to equity swap of commercial banks in bankruptcy reorganization,and optimizing the supervision system of debt to equity swap of commercial banks in reorganization.