Research On The “two-step” Model And Impact Of Market-oriented Debt-to-equity Swaps For Group Companies

In order to reduce the debt burden of enterprises and effectively reduce the leverage ratio of enterprises,the State Council issued the opinions on actively and steadily reducing the leverage ratio of enterprises and the guiding opinions on debt to equity swap of market-oriented banks in October 2016.A new round of debt to equity swap of market-oriented banks has been unveiled since then.With the gradual development of market-oriented debt to equity swap in China,debt to equity swap has gradually completed the evolution from policy to market,and the implementation mode has been continuously improved.At present,it has become an important tool for enterprises to reduce the debt burden in the short term and resolve the non-performing assets of commercial banks.With more and more enterprises participating in it,the mode of debt to equity is gradually diversified.Many enterprises explore their own debt to equity programs based on their own characteristics.Since the development of market-oriented debt to equity swap,sinotruk is the first enterprise to carry out debt to equity swap in the new mode of "two steps".This paper is taking this as a starting point to briefly introduce the current situation of market-oriented debt to equity swap In this paper,the author analyzes the existing problems of the "one-step" mode of debt to equity swap in many group companies,and compares the first "two-step" mode of debt to equity swap in China heavy industry with the "one-step" mode from four aspects: the speed of leverage reduction,the follow-up capital landing,the pricing mechanism and the way of withdrawal,and analyzes the characteristics of the new mode;Then it discusses the implementation effect of the new mode of debt to equity in China heavy industry,including the market response,corporate value,financial aspects and the impact of the new mode on many debt to equity participants,and points out the control right arrangement and institutional investor risk problems in the implementation process of the new mode.Finally,it puts forward three aspects of common from the government,the implementation organization and the implementation enterprise We should make great efforts to promote the implementation of debt to equity swap.The paper concludes that the "two-step" mode adopted by China heavy industry has the advantages of rapid reduction of leverage,rapid capital in place,proper pricing and perfect exit channels,which not only relieves the debt pressure but also brings new vitality to its development.Compared with the "one-step" mode,it has greater progress and innovation,and it wants to reduce the financial burden in the future For the group company of,this path has certain replicability.However,there are also problems in the arrangement of control rights and the risk of investors' lock-in period.In the future,enterprises should pay attention to these two problems when adopting the mode of debt to equity swap,make bold innovations in the mode of debt to equity swap,and enrich the connotation of a new round of market-oriented debt to equity swap.