Application Research On Market-oriented Debt-to-equity Conversion In Bankruptcy Reorganization Of State-owned Listed Companies

Affected by macroeconomic restructuring and poor management of own state-owned enterprises,state-owned enterprises are facing the problem of overcapacity,high asset-liability ratio,unable to carry out normal operation,and even become"zombie enterprise" causing resources waste.With the gradual development of the capital market,debt restructuring has become a common economic activity for listed companies to get rid of financial difficulties.The revision of the bankruptcy law has provided listed companies with a new way out for bankruptcy reorganization.After the introduction of market-oriented debt-to-equity conversion policy,market-based debt-to-equity conversion can also be used in reorganization.Then how is the market-oriented debt-to-equity conversion applied in bankruptcy reorganization?What is the impact?Through the case study of the reorganization of Chongqing Iron&Steel Company,we may answer our questions.Chongqing Iron&Steel Company has been operating from 2011,and it has suffered losses for two consecutive years in 2015 and 2016.By reorganizing,it successfully got rid of the crisis.Its adoption of market-based debt-to-equity swaps is the key to successful restructuring.This paper will study the application of market-based debt-to-equity conversion in the bankruptcy reorganization of state-owned listed companies through the case of Chongqing Iron&Steel Company.At present,there are many studies on reorganization and debt-to-equity conversion,but the combination of the two is more common in the legal field.This paper intends to search and review reorganization and debt-to-equity related literature,use analysis methods to analyze the backgrounds of reorganization of Chongqing iron&steel Company,the rationality of the plan,and its implementation effect,explore the application impact of market-oriented debt-to-equity conversion in the reorganization.Finally conclude that the implement is based on the financial situation of the company,and impacted by industry and policy.The design of the plan is the result of the game of all stakeholders,its implementation will not only help the company to get rid of financial difficulties in the short-term,but also contribute to long-term development.The research in this paper can provide reference for listed companies to formulate reorganization plans,and help to solve the problem of enterprise restructuring in the steel industry and even the entire overcapacity industry.