The Causes And Countermeasures Of Wintime Energy Debt Default

Since the resumption of the issuance of national debt in 1981,China’s bond market has begun to develop.With the gradual maturity of the bond market,the stock size and the number of issues are increasing,and the risk of bond default is also increasing.In 2014,China’s bond market broke through the rigid payment,credit risk broke out intensively,and bond default became the norm.Under this background,we need to face and solve the problems in the future by analyzing the causes of bond default at the current stage in China,exploring how to deal with it after bond default,summarizing effective measures to resolve the debt crisis,and enabling the defaulting enterprises to get out of financial difficulties and return to the normal operation track.The default of Wintime Energy Bonds has a wide impact,and the causes of default and disposal methods are highly representative.This paper focuses on the cause and countermeasure of Wintime Energy debt default by taking the current situation of domestic bond default into consideration,and its successful bankruptcy reorganization is of great significance in listed companies.Wintime Energy is a private listed company mainly engaged in coal and electric power business.In 2017,with the implementation of China’s supply side structural reform and financial deleveraging policy,the domestic bond market shrank significantly,market funds tightened rapidly,Wintime Energy’s financing channels narrowed sharply,financing costs increased significantly,financial institutions withdrew loans and bond issuance was blocked,and finally bond default occurred on July 5,2018.First of all,this paper mainly uses the case study method and the comparative study method to study the default of Wintime Energy bonds,combs the relevant literature on the factors affecting the default of bonds and the ways of handling the default of bonds,and expounds the relevant concepts and theoretical basis around the default of bonds;Secondly,through the introduction of the company’s operation and financing situation,we sort out the phenomenon and process of bond default,combined with the macroeconomic environment and financial market environment,systematically analyzed the development strategy,financing strategy and internal governance of Wintime Energy from multiple perspectives,and explored the causes of bond default of Wintime Energy and the way to deal with it.Finally,Based on the above research,this paper analyzes the main reasons for the default of Wintime Energy Bonds,summarizes the successful experience of bond default disposal,and draws the inspiration and conclusion of this study.Through the research on the default of Wintime Energy Bonds,the enlightenment of this paper is as follows:(1)As for the reasons for the default of bonds,we should formulate a rational expansion strategy,control a reasonable debt scale,and strengthen the corporate governance structure;(2)As for the disposal of bond default,it is necessary to establish a market-oriented default disposal mechanism,determine a feasible reorganization plan,and improve the creditor compensation protection mechanism.By implementing bankruptcy reorganization,Wintime Energy not only resolved the debt crisis,but also made the company reborn,ensuring good subsequent production and operation,which is of great significance for the choice of default disposal methods and effect research.By studying the case of Wintime Energy bond default,this paper provides reference and reference for more enterprises in financial distress in the future,and helps us better deal with the occurrence of default events.