Research On The Bankruptcy Reorganization Of Zombie Enterprises

Zombie enterprises are enterprises that have stagnated or get loss for a long time,but rely on government bailouts and funds from banks to survive.Such enterprises have long-term dependence on resource demand in the economic system,and bankruptcy may bring greater risk to society.However,in the long run,zombie enterprises consume social resources,disrupt the normal market order,and bring difficulties to the adjustment and transformation of the economic structure.Properly dispose of zombie enterprises in order to make the economy operate healthily.In practice,there are some dispose methods such as mergers and acquisitions,custody operations,bankruptcy reorganization,bankruptcy liquidation,etc.Different methods have their advantages and applications.Generally speaking,the number of enterprises that choose to reorganize is relatively large,because it protects the interests of creditors more,and avoids the demise of enterprises.However,the choice of methods needs to be based on the situation of enterprises.Reorganization does not mean that the business problems of enterprises can all be completely solved.Taking the bankruptcy reorganization case of Chang Jiang Shipping Group Phoenix Co.,Ltd.as an example,this paper analyzes the reasons,details and effects of reorganization,in order to provide solutions for similar enterprises.This paper introduces the research background and significance,research content and research methods,and summarizes and comments on the literature on the determination and disposal of zombie enterprises at home and abroad.The part of theoretical basis introduces several methods for defining zombie enterprises,the economic theory of the causes and disposal of zombie enterprises,international disposal experience,and compares several ways to get rid of the difficulties in the current practice,laying down a foundation for the latter case analysis.The case analysis part introduces the process of bankruptcy and reorganization of CJSG Phoenix Co.,Ltd.It uses two methods to determine whether the enterprise before the reorganization is a zombie enterprise,and then analyzes its causes of becoming a zombie enterprise according to the operation status of the enterprise and effects of government and banks.After that,the value and performance of the reorganization are analyzed in combination with the reorganization plan of CJSG Phoenix Co.,Ltd.The reorganization value includes both quantitative value and qualitative value.The reorganization performance includes the short-term reaction of the company's stock price in the market and the long-term reflection of financial indicators.And whether it is still a zombie enterprise after the completion of the reorganization is judged again.Finally,this paper summarizes the inspiration of this case using bankruptcy reorganization and rebirth,and puts forward some suggestions on the disposal of zombie enterprises.