Debt Equity Issue Of Research

The Chinese communist's fourth plenary meeting at fifteenth fall due work out one decision document that bring forward one policy that carry Debt-to-Equity Swap between state-owned commercial banks and state-owned corporations into execution. Then Debt-to-Equity Swap causes abroad discussion. But these discussions are only from economic point of view, and are limited on the state-owned corporation innovation. This article deeply discusses Debt-to-Equity Swap mainly from law point of view involving common private corporations.At first, this article introduces the common Debt-to-Equity Swap concept, and then the article analyses the significance of Debt-to-Equity Swap from aspect of theory practice. The significance decide if Debt-to-Equity Swap is needed. When analyzing the practice significance of Debt-to-Equity Swap, this article discusses the "Debt-to-Equity Swap" which is practiced in our country as well as the common Debt-to-Equity Swap. I particularly analyses the difference between the concept and the "Debt-to-Equity Swap" which has been actualizing in our country. In addition,Secondly, this article compares Debt-to-Equity Swap with convertible debts, investing debt and capital on loan. Then the article introduce six modes of Debt-to-Equity Swap, such as participating in, swap pattern, capital-expending and sharing pattern, transfer pattern, setting up new corporation pattern, debt-transfer pattern, annex-reset pattern. All of these patterns, only participating in swap pattern and capital-expending and sharing pattern is the basic pattern which grow out other four patterns. The two basic patterns is this article's base. For a good discussion precondition, this article specially analyses the confine of "debts" and "equity" in Debt-to-Equity Swap. The confine of "debts" and "equity" decide what kind of debt or equity can be used in Debt-to-Equity Swap. After analysis I think most kinds of debt and equity can be use in Debt-to-Equity Swap.Thirdly, the article studies the feasibility of Debt-to-Equity Swap. In this section, I have analyzed the character of debt and equity one by one. After study I think they both belong to the right of property. On the other hand, there is actually difference between debt and equity, but I think the common ground is main aspect, because the difference is premise of Debt-to-Equity Swap, but the common ground is the key of Debt-to-Equity Swap.Fourthly, this article studied the mechanism of Debt-to-Equity Swap fromdebt perishing and equity existing. I think debt's perishing is not because the contract's termination or unchaining but countervail of debts. So the mechanism of Debt-to-Equity Swap is countervail theory of civil law. In addition, this article discussed the nexus between Debt-to-Equity Swap and the principles of capital, pointing out that Debt-to-Equity Swap didn't breach the creditor's right which is protected by the principles. So I think the principles can't overthrow Debt-to-Equity Swap system.Fifthly, this article enumerated other countries' legislation, pointing out that if permit Debt-to-Equity Swap determined by the law system adopted by the country. And from the analysis of policy of some country on Debt-to-Equity Swap, I think permitting it is the main current.Finally, this article studied the "Debt-to-Equity Swap" adopted by our country by introducing its special meanings and origin, introducing its practice process, from analysis of the process I point out problem of the "Debt-to-Equity Swap" in our country and bring forward five corresponding measure to perfect it.