The Analysis Of A Case Of Debt-to-equity Conversion Of Yunnan Tin Group Under The Background Of Marketization

At present,the leverage ratio of China’s enterprises is too high,and the scale of debt growth is too fast,which may lead to large-scale debt default problems.Based on the successful resolution of debt-to-equity swaps in the 1990 s,the government proposed a market-based debt-to-equity swap policy.In October 2016,the government issued the Guiding Opinions on Marketized Bank Debt-to-Equity Transfers to guide and promote the legal system between banks and enterprises.The market-oriented debt-to-equity swap will reduce the company’s asset-liability ratio and bank’s non-performing asset ratio,prevent financial risks,and allow companies to temporarily escape financial difficulties and focus on longer-term development.This article selects the debt-to-equity swap implemented by Yunnan Tin Group(Holdings)Co.,Ltd.(hereinafter referred to as “Yunxi Group”)as a case study,and it is the first local state-owned enterprise’s debt-to-equity conversion in the “Opinions on Marketized Debt Conversion”.Cases are of great significance in analyzing how to choose debt-equity-to-equity companies,the operation mode of debt-to-equity swaps,and the market-oriented representation of equity exit mechanisms.After analyzing this case of debt-to-equity swap,this article has reached the following conclusion: The marketization of the transfer of shares of Yunnan Tin Co.,Ltd.in the process of debt-to-equity conversion is mainly reflected in four points: First,the voluntary negotiation between the company and the financial company to determine whether the debt is transferred The second is that the pricing of claims and shares is valued by appraisal agencies that are both parties recognized.Third,the form of equity exits also hopes to be backed by market channels and supplemented by repurchasing.Fourth,most of the debt-to-equity transfers come from capital.market.This article mainly compares the conversion of shares of Yunnan Tin Co.,Ltd.to the previous round of policy debt-to-equity swaps and several debt-equity swap cases before the introduction of the debt-to-equity swaps,and analyzes the advantages and disadvantages of market-oriented debt-to-equity swaps and market-based debts.The effect of the conversion opinion on the conversion of this debt to equity.For the follow-up corporate debt-to-equity swaps to provide reference in the operation mode of debt-to-equity swap,it will help enterprises to reduce leverage,structural adjustments,restore profitability,but also reduce the hidden financial risks.