*ST Chongqing Iron And Steel Bankruptcy Reorganization And Its Performance Research

Under the environment of market economy,enterprise competition is fierce and cruel,and listed companies also face various risks and challenges.High debts due to poor operation and management may cause companies to fall into financial crisis or even bankruptcy.Before the bankruptcy reorganization system was adopted,the only option to enterprises was bankruptcy and liquidation.With such system,some enterprises could avoid bankruptcy if they still have market value can still operate.This thesis focuses on the bankruptcy reorganization case of *ST Chongqing Iron and Steel.Due to poor operation and management,and serious debt crisis,the company has suffered huge losses since 2013 and was issued a delisting risk warning in 2017.Under the auspices of local court,*ST Chongqing Iron and Steel initialized bankruptcy reorganization.The reorganization includes debt-to-equity and cash settlement of debts,and also the re-enactment of business plans to gradually increase profitability and operations.The company realized a turnaround in the second year and also eliminated the delisting at the same time.after the reorganization *ST Chongqing Iron and Steel effectively eliminated the debt risk,turning losses into profits and eliminating delisting risks,the interests of various reorganization parties are effectively guaranteed.Good reorganization effect also enabled the government to actively participate in the guidance,reorganization plan and the effectiveness of the enterprise operation and rectification plan.In order to objectively evaluate the effect of reorganization and further verify the effectiveness of the reorganization plan,this thesis selects EVA indicators and combines traditional financial indicators to comprehensively evaluate the performance of enterprises before and after reorganization.This study has shown that,when the company was in trouble,scientific bankruptcy reorganization could save companies from bankruptcy and ameliorate business conditions,as well as improve short-term performance.The success of *ST Chongqing Iron and Steel bankruptcy reorganization provides reference for further perfecting the theory of bankruptcy reorganization,which could be beneficial to other listed companies under similar situation.