A Study On Bank Of Lantian' Debt-to-Equity Swaps For Bankruptcy Reorganization Of Enterprise

In recent years,our financial system has been greatly changed with the rapid fluctuation of the economic situation at home and abroad,credit enterprises of some commercial banks are faced with the decline in profits,high debt,broken capital chain and other problems.At the same time,commercial banks have large volume of the bad assets,the rate of harmful loan continued to climb,and the quality of credit assets continued to decline.In October 2016,the State Council issued two documents,which were the Opinions on Actively and Steadily Reducing corporate Leverage and the Guidance on the Market-oriented Bank Debt to Equity Swaps.Since then,as a major supporting measure to reduce the leverage rate of enterprises at this stage in China,debt-to-equity swaps receive the extensive concern of government departments and financial institutions to the effect of allocation of credit resources and enterprise rescue.Based on the case of Bank of Lantian's debt-to-equity swaps to bankrupt enterprises,this paper systematically analyzes the constraints and problems of commercial bank debt-to-equity swaps from theory and experience,and puts forward suggestions.This paper is divided into four chapters,the main content is as follows: First of all,this paper summarizes the basic theory and research status related to the bankruptcy reorganization and debt-to-equity swaps,and provides theoretical support and research ideas for the analysis of Bank of Lantian's case of debt-to-equity swaps for enterprise in need of bankruptcy reorganization.Secondly,this paper describes and analyzes the background and current situation of Bank of Lantian's debt-to-equity swaps for enterprises' bankruptcy reorganization on the basis of the analysis of commercial banks' basic situation of debt-to-equity swaps.Thirdly,this paper clarifies constraints and problems of debt-to-equity swaps project,so as to analyze causes of problems.Finally,the paper puts forward some suggestions to effectively improve the efficiency of debt-to-equity swaps.Based on the case study,this paper finds that Bank of Lantian have a widespread restrictions such as shareholding model,voting mechanism,completion time limit and exit time limit in the process of debt to equity swaps.At the same time,there are many problems within Bank of Lantian,such as passive participation in the reorganization process,lack of reasonable assessment on debt-relief equity,the failure of the decision-making system to construct and obstacles to the implementation of the reorganization plan.In order to effectively deal with the above-mentioned problems,it is suggested that Bank of Lantian should enhance the efficiency of participating in debt-to-equity swaps by seeking the support of all parties,playing a leading role,paying attention to key issues and formulating rational plans.On the whole,this paper is a study of debt-to-equity swaps for the enterprise' bankruptcy reorganization from the perspective of commercial banks,and put forward the relevant suggestions to improve the commercial bank's efficiency of the business of debt-for-equity swaps,which has the significance of reference to commercial banks which participate in similar cases to a certain extent.