Amoi Bankruptcy Reorganization And Effect Analysis

With the development of market economy, the listed companies are influenced by many factors. It can make the listing corporations into a crisis whether distempered corporate governance structure, poor production and operation mode, or poor solvency by high asset liability ratio and other issues. If the listing corporations cannot withstand the test of the market, it will fall into the difficult situation of bankruptcy. After implementation of the new bankruptcy law, Amoi Electronic Co. Ltd was the typical public company that carried out bankruptcy reorganization successfully. We can summarized some experiences through analyzing on bankruptcy reorganization of Amoi and its effects, That can give many positive effects for the shareholders, creditors, reforming party and the listed company itself.Amoi electronic was suspended by Shanghai Stock Exchange due to successive losses. The company was forced to restructure in September 15,2009, because of the application of Amoi torch limited company.There were three factors of Amoi bankruptcy reorganization situation, The disordered governance structure and bad management in industry of Amoi Electronic Co. Ltd was one of the main reasons; the second one, because of bland diversity and excessive business expansion, it led the company that introduced notebook, LCD TV,MP3 and other markets successively to a bad development situation; Last but not least, in order to solve the bankruptcy situation that is due to aggressive development strategy and great input to 3G, the company carried out the restructuring of the business plan, equity restructuring and debt restructuring.To further illustrate the effects of restructuring Amoi, Amoi restructuring plan after the combination, and Amoi bankruptcy reorganization 2009-2015 financial data to shareholders, creditors, restructuring of listed companies as well as side effects of a comprehensive analysis. Amoi choose bankruptcy reorganization, shareholders avoid the loss of investment, after successful reorganization Amoi Electronics shares rose, shareholders can not only recoup their losses, but also access to capital premium. After the creditors than the liquidation of a higher debt ratio, successful bankruptcy reorganization, because of debt, the share price rises, the repayment of creditors, the ratio will be higher. After the company’s profitability, solvency, operational capacity and development capacity for analysis after the adoption of bankruptcy reorganization, suggesting that the bankruptcy reorganization of production and operation have been significantly improved, solvency, profitability, development capacity has the improve. Reforming party for maximum effect, not under scrutiny by the IPO, backdoor listing quickly realize.By Amoi bankruptcy reorganization and its effects are analyzed, it shows that Amoi bankruptcy reorganization has been very successful. Amoi reorganization key to success in its first comprehensive restructuring program, through innovative approaches bankruptcy and restructuring and reorganization of resources integration, to achieve an effective local graft shell resource management and local state-owned assets. Secondly, thanks to the judiciary judicial innovation, first introduced in the business and assets of the trusteeship system in corporate restructuring, the creation of the occupied asset protection systems and anti-preservation of the two systems, the creation of the outgoing audit system administrator. Finally, the government’s co-operation, the municipal government set up a special leading group restructuring, funding to establish "a fund two funds" to provide support for the restructuring. Analysis based on Amoi bankruptcy reorganization and the effect in the following conclusions: In the integrated sound restructuring plan, with a series of related bankruptcy reorganization mechanism established by the judiciary and the government’s support of these three factors in the case, reorganization of listed companies to be successful, to shareholders after a successful reorganization to obtain capital premium pay off creditors receive a higher proportion of listed companies significantly improve their development, reforming party to get the maximum effect, quickly achieve backdoor listing.