The Study On Handling The Bad Capital Of Hunan Wamc Pharmacia Company

There are a large number of bad capitals in China's bank system. Asset Management Companies(AMC) are founded to deal with this hidden trouble. The experiences I have gained in handling the bad capital of Hunan Wmac Pharmacia Company display that this case is an innovative one.Because of the very bad operation of Hunan Wmac Pharmacia Company, this company had been in debt of 96.39 million Yuan. The ways to handle bad capital include reconstruction, holder-sharing of capital and so on. In handling its bad capital, the CINDA had tried to reconstruct the debt but failed. Compared with those ways, CINDA eventually took an innovative method to handle its debt. This method can be described as"litigation+trust+materialize+share-holding+share transfer". Then we studied this model with the SWOT analysis method.Any modes to handle bad capital have risks, and there is no exception for the above method. Just for this reason, we had to take cautious measures. In the basis of anglicizing the question in every stage of the process of bad capital's handling, we summarize the ways to deal with the risk and conflict.According to the theory of the effectiveness assessment in the handling of bad capital, many factors such as handling modes, the operating situation of a company, may inflect the effectiveness of the handling of bad capital. The demonstration of this case also proved that we couldn't ignore those factors.The program CINAD had taken in the case of Wmac Pharmacia Company can be concluded that it is successful. The success supersedes itself because the company is renascent. This program had provided nearly 400 working position and had taxed more than 5 million. It shows that this model to handle bad capital is worth of extending. That is also the purpose of this article.