Research On The Plan And Implementation Effect Of Bankruptcy And Reorganization Of State-owned Enterprises

Under the background of the country’s vigorous promotion of supply-side structural reforms,the steel industry is the main battlefield for supply-side reform.The 2016 Central Economic Work Conference emphasized five major structural reform tasks,and focused on clearing the ideas of multiple mergers and acquisitions and less bankruptcy liquidation.The "debt-to-equity swap" and "bankruptcy reorganization" are the key words that have emerged frequently since the central government initiated the supply-side reform.In the steel industry,there are a large number of state-owned enterprises with overcapacity and debts.These enterprises must find a way of self-salvation in the macro background of supply-side reform,so as to get rid of the predicament.The use of market-based means for bankruptcy reorganization has given these companies a new way out of the predicament but still saving value.The Chongqing Iron and Steel Bankruptcy Reorganization Case,which ended in December 2017,was considered to be “particularly significant and unprecedented.” Chongqing Iron and Steel Corporation resolved a debt of 41.7 billion yuan in a year,and successfully escaped the crisis.The bankruptcy reorganization case was selected by the Supreme People’s Court as the top ten classic cases of the 2018 national bankruptcy trial,which is typical and effective.Therefore,this paper selects the case of Chongqing Iron and Steel as the entry point for bankruptcy reorganization analysis,which has strong typicality and effectiveness.Based on the existing research and theoretical basis,this paper sorts out and analyzes the bankruptcy reorganization plan of Chongqing Iron and Steel.From the analysis of the difficulties and dilemmas faced by Chongqing Iron and Steel to the process of bankruptcy reorganization,the characteristics of bankruptcy reorganization are elaborated.Then comprehensively evaluate the implementation effect of the bankruptcy reorganization from the perspectives of restructuring costs,market response,accounting indicators,and stakeholders.The study found that Chongqing Iron and Steel is a government-led,market-based approach to solving its financial dilemma.The attempt,bankruptcy reorganization not only made Chongqing Iron and Steel truly cancel the risk of delisting,but also significantly improved the performance;Finally,relying on the successful experience of Chongqing Iron and Steel in this bankruptcy and reorganization,the following suggestions were made: innovation and reform manager’s selection mode,introduction of steel industry adjustment fund,emphasis on follow-up management plan and protection of debt rights and interests.In order to provide experience for companies facing the same difficulties in the steel industry.