Research On The Protection Of Creditors’ Interests In Bankruptcy Reorganization Debt-to-equity Swap

China has provided a reorganization system in the Enterprise Bankruptcy Law,and bankruptcy reorganization provides an effective way to save enterprises from debt distress,among which debt-to-equity conversion is one of the common means of bankruptcy reorganization,which has a crucial impact on the implementation effect of enterprise bankruptcy reorganization.However,it has gradually revealed many hidden problems in practice,which make the application of debt-to-equity conversion by creditors in the reorganization process still very risky,and the violation of creditors’ interests in the process of debt-to-equity conversion has occurred from time to time.Therefore,the protection of creditors’ interests in bankruptcy reorganization debt-to-equity conversion is an issue that deserves attention.Based on this,this paper chooses to study the protection of creditors’ interests in debt-to-equity conversion in bankruptcy restructuring.By introducing the basic theory of debt-to-equity conversion,starting from the basic concept,role,development and attributes of debt-to-equity conversion,as well as the conflict of interest in the process of debt-to-equity conversion in bankruptcy reorganization and the necessity of its implementation,the paper compares the current legislative and practical situation in the field of debt-to-equity conversion in bankruptcy reorganization in China,and analyzes in detail the problems of protection of creditors’ interests in two typical cases,and finds that the existence of these problems is not an isolated phenomenon.Most of these problems include excessive intervention of public authority,defective voting mechanism of debt-to-equity conversion,imperfect corporate governance mechanism after debt-to-equity conversion and certain difficulties for creditors to exit after the conversion,which will,to a certain extent,adversely affect creditors and increase the risk of creditors.Therefore,in order to better protect the interests of creditors,it is necessary to regulate the intervention of public authorities in debt-to-equity conversions during bankruptcy restructuring,improve the voting mechanism of creditors in debt-to-equity conversion proposals,and improve the internal governance of restructured enterprises as well as the exit channels of creditors’ equity after conversion,so that the interests of creditors can be more thoroughly protected.