Case Study On Bankruptcy Reorganization Of State-Owned CY Company

Since 2010,the global economy has had overcapacity and the economy is facing major challenges.The negative impact of the economic downturn of Chinese companies is still large,and the debt burden is getting heavier and heavy,so the company’s operations are very difficult.The difficulties faced by state-owned enterprises are particularly serious.The management methods are not scientific enough and they are heavily in debt.Most of them are facing severe financial crisis.Although many state-owned enterprises have gone bankrupt,they still have strong market competitiveness.For such enterprises,the state should give them the opportunity to be readjusted and listed,so that the interests of their stakeholders can be effectively guaranteed.The bankruptcy reorganization of state-owned enterprises has been at the theoretical research stage.At present,the academic research on bankruptcy reorganization mainly focuses on the legal level and restructuring performance,most of which are empirical research.This paper combines theory with case,analyzes the reorganization and listing process after bankruptcy,discusses the importance of enterprise reorganization,and summarizes relevant experience,which is the innovation point of this paper.CY is China’s first re-listed central enterprise,and its performance has improved after bankruptcy restructuring.Therefore,the analysis of this paper will be more valuable.Through relevant research,it is found that although the company is in the predicament of serious bankruptcy,its competitiveness remains.Through bankruptcy reorganization,its debt crisis will be solved.Through the debt-to-equity swap,the basic rights and interests of creditors will be protected,and the strengthening effect of the withdrawal mechanism of Banks will be demonstrated.When companies put their bankruptcy plans in place,performance improves.Many delisted companies actually have the idea of going public again,among which CY company is outstanding because its main business,actual control and management have hardly changed.In the case of “three noes” in which the main business has not changed,the actual control rights have not changed,the management has not undergone major changes,the business recovery capability has been restored,and the main business has achieved profitability.It has been implemented for three consecutive years.These application conditions have good reference value for other delisting companies.This paper not only enriches the theoretical research on bankruptcy and reorganization of state-owned enterprises,but also has certain practical significance.CY is China’s largest oil-transporting state-owned enterprise with great influence.Summarizing the experience of bankruptcy reorganization and re-listing success stories,saving state-owned enterprises,getting rid of debt crisis and improving efficiency have important practical significance.