An Analysis Of The Influence Of The Debt Restructuring At Jilin Guanghua Holding Group Co.,Ltd

Nowadays,the fierce competition in the capital market,more listed companies will face financial risk because of the various reasons,even more the companies will face the cash flow difficulties,which may cause some bad results,such as the companies are bankrupt.As usual,in order to resolve financial difficulties,there are two ways can be chosen,when enterprises cannot repay the debt.For the first way which is declared bankrupt means the companies should be involved in bankruptcy liquidation procedures;the second way which is needed to negotiate with creditors is debt restructuring.Debt restructuring is useful way which not only can as much as possible to protect the interests of creditors,but also can minimize the loss of debtors and creditors,when the company still has enough development potential.Effective debt restructuring can maintenance the rights of the creditors in some degree,also provides a development and survival of opportunities to the debt of companies again.Many creditors choose to restructure the debts of company by the people's court,if the debtors still cannot repay debt.Company sustainable development has an integral relationship with the success of debt restructuring in times of financial distress.Some listed companies undertake debt restructuring for purposes of profit handling,statements beautification and policy escape but not for improving capital structure,production and management.Therefore,only social supervision and perfection of standards and system can guarantee that debt restructuring can get better enforcement and develop its real meaning.Based on the analysis and conclusion of domestic market's present situation,this paper properly explain the reasons and the key factors determining the success of debt restructuring and offers some relevant suggestions and countermeasures for other companies.This paper is focused on the economic consequences and performance brought about by debt restructuring.Economic consequences is subject to accounting standard so that it can be exposed by the data on the accounting statement.Company can be reborn and avoid the risk of being delisted through debt restructuring.This paper elaborates the economic consequences brought about by debt restructuring from respects of financial situation,enterprise tax burden and stakeholders.As regards performance,it covers financial situation.In a broader sense,it also includes non-financial situation,which is important foundation to improve financial situation.The performance of listed company is the focus for multiple stakeholders such as shareholders,creditors,staff,customers,suppliers and government.Traditional performance evaluation system,namely financial evaluation method,cannot meet each evaluation subjects' needs.Emerging non-financial performance evaluation will evaluate the listed company comprehensively from respects of strategic performance evaluation,governance performance evaluation,resource integration performance evaluation and innovation performance evaluation.Many domestic and international experts and scholars have done some discussion and research on performance evaluation of listed company,forming various theories and methods.However,these theories and methods are not that perfect and cause a lot of questions in native applicability.Based on the data over the years,this paper deeply dissects the event of debt structuring,sufficiently integrating all theoretical approaches from various experts and scholars and various factors,combining theoretical practice with company development profile.This paper hopes to provide some helps to listed campanies in China.