Research On Application Results Of Debt-to-equity In The Process Of Enterprise's Returning Into The Market

In recent years,global overcapacity has caused China's econo my to face major challenges.The continued economic downturn has forced most companies to increase the overall debt scale and debt ratio.Among them,state-owned enterprises,which are the backbon e of the country's economy and an important pillar of the industry,are also inevitable.Many companies are struggling to run their bu sinesses,falling into financial difficulties,and even being traded by stocks.The terminated transaction becomes a delisted enterprise.In order to relieve the urgent need to alleviate the operating pressure of enterprises,a debt-to-equity policy that can effectively reduce c orporate leverage and ease the operating pressure of enterprises has been put on the agenda again since 1999.Based on the successful experience of the implementation of p olicy-based debt-to-equity swaps in the 1990 s,the country put forw ard a market-oriented debt-to-equity policy and issued relevant polic y documents such as the "Guiding Opinions on Market-oriented Ba nks' Credit-to-Equity Conversion" in October 2016.The purpose is t o reduce the corporate asset-liability ratio and the bank's non-perfor ming asset ratio,while preventing financial risks while protecting th e rights and interests of relevant stakeholders and creditors.It also enables those state-owned enterprises that are seriously insolvent butstill have development potential or have competitive advantages to get out predicament and restore the original vitality.This article is based on the study of the implementation of exi sting debt-to-equity swaps.Taking Nanjing Tanker Corporation as an example,looking at the entire process of its delisting,bankruptcy and re-listing,it analyzes the causes of corporate debt problems.At the same time,the necessity of debt-to-equity swap is put forward.This paper describes the Nanjing Tanker Corporation debt-to-equity swap program and its implementation process,and analyzes the ke y issues in its debt-to-equity swap program and the effect of the de bt-to-equity swap program.It draws the following conclusions: Carr ying out the plan of debt-to-equity awap while effectively solving t he problem of excess capacity,it alleviates and improves the short-t erm debt predicament and operating environment of enterprises,and helping companies get back on the market.More importantly,thro ugh the analysis of enterprise value of the Nanjing Tanker Corporat ion,it is further explained that debt-to-equity swap has played a po sitive role in reducing financial risk,enhancing the sustainable man agement ability and stable development of enterprises.The study of this paper hopes to provide some reference for th e follow up debt-to-equity swap enterprises in the implementation o f the debt-to-eqiuty swap program.In the case of serious insolvency but obvious competitive advantages,enterprises can use debt-to-eq uity to turn the enterprise into safety,not only to protect the intere sts of creditors,but also resolve their own debt crisis.However,the implementation of debt-to-equity swap has certain limitations,and enterprises should consider its applicability when choosing.