On The Solution And Prevention Of The Risk Of Guarantee Circle From The Perspective Of Bankruptcy And Reorganization Of Private Enterprises

In 2008,due to the outbreak of the international financial crisis,the domestic economy also faced a risk of a hard landing.In order to maintain the stability of the domestic financial environment,the Chinese government formulated and launched ten measures at the end of 2008 to"further expand domestic demand and promote steady and rapid economic growth,"and a large amount of capital was invested in the market.Shandong Province is a traditional industrial province with many private enterprises.The industries involved are concentrated in chemicals,textiles,metallurgy,machinery,etc.There are few leading enterprises,and small and medium-sized enterprises are showing large investment,low industrial level,and low technical level.As the industrial homogenization in Shandong Province becomes more and more serious,basic low-end projects compete to launch,resulting in a serious overcapacity and an increasing debt bubble.In 2015,the Central Working Economic Conference proposed"three reductions,one reduction and one supplementation",five measures:"reducing production capacity,removing inventory,deleveraging,reducing costs,and supplementing shortcomings."The funds that entered the market immediately tightened,and banks began to lend money,which led to the continuous breakdown of capital chains in enterprises,and finally forced the guarantee companies to continue to compensate for the bad companies,dragging the guarantee companies into a dilemma.The guarantee circle has evolved from"holding groups to heat up"to"fire-burning companies".Private enterprises have suffered from large-scale mismanagement and insolvency,and have been forced to embark on bankruptcy liquidation or bankruptcy reorganization^[1].In this context,with the help of LD Group's bankruptcy and reorganization case study,this paper summarizes how to use the bankruptcy and reorganization tools to break the chain and break the chain reasonably,and proposes a plan to optimize the guarantee model.This article first sorts out and reviews related theories and research results of the guarantee circle and the risks of the guarantee circle,corporate bankruptcy and reorganization.On this basis,taking the LD group company that is involved in the deep guarantee circle and is seriously dragged by the risk of the guarantee circle as a result of bankruptcy reorganization as an example,the literature review method,case analysis method,field research method and other methods are used to combine information asymmetry.Theories,credit rationing theory,correlation theory,risk theory,etc.,from the perspective of private enterprise management and strategic choices,sort out the reasons for the formation of the guarantee circle,the status quo,and the situation of the enterprises in the circle.The internal and external reasons pointed out the problems of blind expansion,blind diversification,over-financing,and chaotic operation and management in Shandong private enterprises,and pointed out the undesirable tendency of many enterprises to be forced to lend in the later period and increase the trade volume in order to obtain loans.The main feature is that the same actual controller implicitly controls multiple related companies.There are many related party transactions,and there is no real trade,so as to repay other loans.Correspondingly,the risk of the guarantee circle is the main reason for the bankruptcy and reorganization of the LD Group,and it points out that the risk of the guarantee circle has a huge destructive effect on the regional economy.Subsequently,the bankruptcy and reorganization process was studied,problems were found in the process of cracking the guarantee circle,and a response plan was proposed.Finally,the LD Group guarantee circle risk resolution path and optimization were deeply thought and summarized.A set of bankruptcy reorganization schemes suitable for most enterprises that fall into the risk of the guarantee circle,as well as the subsequent optimization of the guarantee circle and methods of preventing risks,are worthy of reference by most private enterprises.