"Magnesium" Dream Breaking:

So far,the market-oriented reform has begun for more than 20 years,which has made great changes in China,especially in its economy.However,with the continuous development of our national economy,many listed companies have broader opportunities for progress.At this time,it also leads to more fierce market competition.In such a fierce competitive environment,many listed companies are easily trapped in financial distress because they can not stand the test of the market,coupled with their own internal management problems such as poor management.Under the traditional bankruptcy law,most of the listed companies will be required to carry out bankruptcy liquidation,but their bankruptcy behavior will make creditors,investors,employees and other stakeholders sacrifice their own interests,in order to make up for the defects of the traditional bankruptcy system.Therefore,China promulgated a new bankruptcy law in 2007.The new bankruptcy law introduced the new concept of bankruptcy reorganization,reformed the countermeasures that mainly relied on liquidation in the past,and provided new opportunities for the listed companies facing bankruptcy crisis.Based on the analysis of the causes and driving factors of the bankruptcy reorganization of the state-owned enterprise Qinghai Salt Lake stock,this paper explores the Enlightenment of the case of the bankruptcy reorganization of the salt lake stock.Salt Lake Co.,Ltd.is the largest potash fertilizer production base in China,ranking in the forefront of the world.Its normal operation is of great significance for safeguarding national food security and supporting national strategic development.However,in recent years,due to the increasing downward pressure of the economy,the tightening of financing policies,the high cost of raw materials,the insufficient supply of production factors,the large-scale expansion of investment,but no effect has been formed,resulting in the excessive loss of asset depreciation and the high financial cost and other multiple adverse factors,the debt burden of Salt Lake Co.,Ltd.is becoming heavier and heavier,and it is on the verge of insolvency,and the capital chain has been broken In fact,it has been unable to pay off the matured debts and obviously lacks the ability to pay off.As a listed company in bankruptcy,Salt Lake shares try to recover the bankruptcy crisis caused by over investment by means of bankruptcy reorganization and debt to equity conversion.The case of bankruptcy reorganization of this company can provide other state-owned enterprises or listed companies with ideas to solve the bankruptcy liquidation crisis.Secondly,Salt Lake Co.,Ltd.only announced the bankruptcy reorganization plan and ruling in January 2020,which is currently in the implementation period and has certain timeliness.