Research On ST Chaori Bankruptcy Reorganization Performance

At present,China’s economy is facing downward pressure and corporate leverage remains high.As the leading force of economic development,listed companies are faced with problems such as large debt scale and poor management.Many companies are in financial difficulties in the fierce market competition,and even the stock exchanges have been terminated by the exchange to become delisted companies.On November 16,2018,the "Implementation Measures for the Major Illegal Delisting of Listed Companies" was issued,which built a brand new delisting system and maintained the healthy and orderly development of the securities market.For listed companies that are caught in a debt crisis but still have potential for development in the industry,the implementation of bankruptcy reorganization can not only regenerate the enterprise,but also protect the interests of all creditors.Therefore,how to effectively survive through bankruptcy and reorganization has become the primary consideration of many enterprises under the market economy environment with Chinese characteristics.It is a field that many scholars are studying in depth to study the motives for enterprises to undergo bankruptcy reorganization and how to conduct performance evaluation after bankruptcy reorganization,which has high theoretical and practical significance.This article uses a combination of literature review method and case study method to make an in-depth analysis of the case of ST company’s bankruptcy reorganization.First,the whole case of bankruptcy and reorganization of the case company ST Chaori was introduced,including the company profile of ST Chaori,the causes of financial distress,the process and plan of reorganization;second,the three aspects of market performance,financial performance and non-financial performance In terms of performance,we conducted a performance analysis and research on the reorganization event.Finally,according to the results of performance evaluation,we found that after the bankruptcy and reorganization,the stock price slump,the company’s financial situation has not been fundamentally improved,and the integration risk has increased.At the same time,it draws conclusions that bankruptcy reorganization can help companies gain new life and improve performance,and explores the inspiration of its experience for the implementation of bankruptcy reorganization of listed companies with similar problems.The ST Chaori Bankruptcy Reorganization Case is a classic case of market-oriented reorganization of privately-owned listed companies in China.Through the research in this article,it has enriched the relevant theories of private enterprises to implement bankruptcy reorganization,for companies to reduce capacity,get rid of debt crisis and improve efficiency Summarize experience and provide reference for other private enterprises facing similar difficulties.