Case Study On The Bankruptcy And Reorganization Of XY Company

Bankruptcy reorganization is a positive legal procedure,which is under the auspices of the court and through the interested parties participated and with the help of mandatory legal adjustment of the interest relation,has been carried out in order to avoid bankruptcy and save the life of the debtor who has already had the risk of bankruptcy or who is on the verge of bankruptcy but still hopeful.At present,the reorganization system is recognized as the most active and effective means to save the bankrupt enterprises.The enterprise bankruptcy reorganization has achieved remarkable results in China,since the first introduction of the bankruptcy reorganization system because of the implementation of the enterprise bankruptcy law of the People's Republic of China on June 1,2007.However,the reorganization procedure did not get applied a lot in practice,and the article of reorganization procedure itself has a variety of problems as well,so it may cause economic instability and social unrest by simply taking the form of bankruptcy liquidation.To strengthen the study of enterprise bankruptcy reorganization is an important measure to help companies get rid of financial distress and enhance their ability to develop,which is helpful to protect the status or interests of the main body of the market.This measure not only has a great economic significance,but also contributes to the stability and development of the society.Because of the working relationship I participated in the bankruptcy reorganization of XY company as the third party intermediary and did some of the work,so I am familiar with the situation of the two sides of the restructuring and the whole process of restructuring.This paper takes the form of case analysis,combined with the basic theory of bankruptcy reorganization and the method of financial statements analysis,to carry out a systematic and thorough study of XY Company's reorganization.First of all,the paper studies the macro environment of XY Company at that time overall,and clarifies the research contents and methods,which provide supports for the following case analysis.Secondly,the paper combs the related concepts and theories of merge,bankruptcy reorganization,asset reorganization,etc.and tries to set up an analytical framework,which provide theoretical support for the following research.Finally,the paper analyzes the reasons of XY Company's bankruptcy reorganization and restructuring value combined with the company's situation before the reorganization,and it focuses on studying the design and implementation of the reorganization plan and the evaluation of its effectiveness and the enlightenment brought by the success of the reorganization.Based on the research,the conclusion is:successful restructuring not only needs the restructured enterprises having the corresponding basic conditions but also needs the joint efforts of the parties concerned,such as to safeguard the legitimate rights and interests of workers,to give full play to the role of the government and the court linkage coordination mechanism,to pay more attention to the use of market-oriented approach to promote corporate restructuring,to constantly innovate the mode of asset disposal according to law,and to explore the use of comprehensive model to save the enterprise.The contributions of this paper are mainly presented three points.Firstly,XY company's bankruptcy reorganization is very typical,hoping to provide a vivid case material for the theoretical study of bankruptcy reorganization.Secondly,the case study of this paper is comprehensive and with a strong representation,expecting to provide a useful reference for the bankruptcy reorganization of the enterprises in the same type.Thirdly,the paper tries to set up an analytical framework for bankruptcy reorganization,which analyzing the situation of XY company before the bankruptcy.