Lotus Reopening: A Study On The Implementation Plan And Effect Of Bankruptcy Restructuring To Relieve The Debt Pressure Of Leading Enterprises In The Industry

With China’s economic and social development,enterprises are facing increasingly fierce competition and more risks.Due to the poor management of some enterprises,the mounting debt pressure of enterprises eventually lead to their debt crisis.Before the restructure system was issued,bankruptcy liquidation had been almost the only way out for listed companies in China when they were insolvent.Thanks to the implementation of this system,the enterprises of high market value and regenerative ability can relieve the debt pressure through bankruptcy reorganization and realize the "rebirth".This paper chooses Lotus Health as an example to analyze and study the implementation plan and effect of bankruptcy reorganization to relieve debt pressure.Lotus Health,once an old leading company in my country’s MSG industry,is also the first company in my country to refinance in the year of bankruptcy and reorganization.It was once "blessed" around 2000.However,due to poor management and other problems,the company’s debt pressure continued to increase.Large and on the verge of delisting.In order to relieve the debt pressure,Lotus Health completed bankruptcy and reorganization on March 4,2020,thus realizing the "rebirth of nirvana" of the enterprise.In order to accurately study the Lianhua Health reorganization plan and its effects,based on the development history of Lianhua Health,this paper sorts out and analyzes the debt accumulation process and bankruptcy reorganization plan of Lianhua Health.Z-score model,and introduced *ST Zhongji and Salt Lake shares to compare two cases,analyzed the impact of Lotus Health’s bankruptcy and reorganization on its debt pressure and financial bankruptcy risk,and then used the synthetic control method to relieve corporate debts in bankruptcy and reorganization The role of pressure is empirically analyzed;finally,based on the EVA index analysis method and event research method,the mechanism of bankruptcy and reorganization to relieve debt pressure is further clarified.This paper draws the following conclusions through research: First,Lotus Health went through three stages before bankruptcy and reorganization,from "unlimited glory" to "debt accumulation" and then "on the verge of delisting".Finally,through the bankruptcy reorganization plan,the investor’s rights and interests Adjustment,adjustment of creditor’s rights and adjustment of business plan have realized the "rebirth of nirvana" of the enterprise;second,the effect of relieving debt pressure through bankruptcy reorganization is more significant.Combined with vertical and horizontal comparison,bankruptcy reorganization not only reduces the scale of Lotus Health’s liabilities and asset-liability ratio,which also reduces the risk of financial bankruptcy,and based on the synthetic control method,this paper confirms the implementation effect of bankruptcy and reorganization to relieve debt pressure;third,the mechanism of bankruptcy and reorganization to relieve debt pressure,respectively Improve corporate performance,ease the delisting crisis,revitalize corporate stock prices,and implement restructuring plans to reduce debt pressure.Finally,according to the research,this paper puts forward three research inspirations: rationally adopting bankruptcy reorganization measures,scientifically adopting bankruptcy reorganization model,and avoiding blind expansion while diversifying operations.