Research On Way Of Non-performing Assets Disposition Of KF Company

Non-Performing Assets(NPAs) have become a key problem that constraints the sustainable development of the state-owned enterprise. A huge concern to all levels of our government and state-owned enterprises is resolving this NPA disposal problem in order to ease the enterprise’s burden. The disposal of the stare-owned NPAs is not only a mere policy, it certainly enters into a commercialized phase. Main features of this phase are characterized by commercial operation and marketed disposition. The commercialized phase should seek profit as the goal and use asset value appreciation as a tool. Thus, at this stage, the NPAs disposal requires innovative ways to fulfill its assets value increase. This thesis defines the concept on the basis of the state-owned enterprise NPAs, to sort out the resource allocation theory, “frozen-sucker” effect theory and asset portfolio theory and the like. The thesis analyzes the reasons for the emergence of the state-owned enterprise NPAs problem. The thesis also studies about disposal ways of NPAs domestically and abroad while it summarizes their experiences and lessons. Furthermore, the thesis sorts out and conduct research on the domestic NPAs. Finally, the thesis explores the effective way of the KF Company in disposing its NPAs.Taking KF Company as an example, the thesis defines and classifies NPAs to analyze the causes of the NPA issue. Then, it displays the current NPA situation in the KF Company and concentrates on studying its NPA disposal methods. A strategy of optimizing disposition is proposed later. But none of t disposal methods of KF Company is perfectly standardized, scientific or secured. As a result, these limitations not only slow down the NPA disposal process, they also bring a certain amount of risk to the KF Company. In order to give the KF company regulations to abide by, the paper puts forward the principles of NPA disposal, including minimum cost, rapid disposal, marketization and social benefit. According to these principles and based on KF Company’s existing NPA disposal methods, the thesis proposes an improved strategy for NPA disposal. Lastly, an innovative strategy is also suggested for KF Company disposal of NPAs-- packing disposal and Internet intervention.