| In recent years,the Chinese economy has undergone a wave of reform.The competition between listed companies has become increasingly fierce and cruel.In view of the opportunities and challenges,large companies are making industrial adjustments and product improvements.However,in the process of accelerated expansion,transformation and modernisation of enterprises,many enterprises will face various difficulties,such as declining profitability,fragile capital chains,insufficient supply,high debt and high financial burden due to unsustainable management structure and poor management.If this problem is not resolved properly,it will not only affect the survival and development of a company that cannot adapt to the upturn in reform,but also,in serious cases,the financial crisis will break out.In order to reduce the debt ratio and the debt burden,most companies will use debt restructuring to relieve or reduce companies of the current financial burden and improve their survival and development.The objective of debt restructuring is to simultaneously improve the size of debt and assets in order to fully reflect the positive impact of leverage in order to achieve a greater business impact for the company.There are many ways to restructure debt.Debt conversion is considered as a special form of debt restructuring,that is to say,the creditor's rights are converted into equity through a special management organization.We will effectively reduce the number of enterprises and promote the long-term development of the company.In October 2016,China launched the market-oriented debt swap to foster supply-side structural reform.The However,the implementation of market-oriented debt on equity swaps in China with private companies started relatively late and few private companies have successfully converted debt on equity swaps.And Huayou cobalt successfully conducted the market-oriented debt swap,which effectively reduced the burden of debt and assets,reduced the leverage ratio and really supported the development of the Chinese private economy.In the paper,the leading company of the cobalt industry Huayou cobalt is selected as a research subject and the type of case analysis is assumed.This paper uses methods of analysing the financial performance index,comparative analysis and literature research to analyse the reasons,process and performance changes of a company's possible debt restructuring.The comparison method is then used to compare changes in the financial performance of listed companies before and after the implementation of debt restructuring with changes in actual economic benefits,in particular changes in the capital chain,the capital commitment,the solvency and the cash-flow of the enterprises following the restructuring of the debt in order to comprehensively and comprehensively assess the financial results of the listed enterprises following the implementation of the debt restructuring;The specific advantages of the industry.Following the analysis,the following conclusions are drawn: under the impact of market-oriented debt rescheduling on equity swaps,the indicators of the Huayou cobalt industry have been improved,the asset-liability ratio decreased,the structure of assets and liabilities more reasonable,reducing the firm's repayment pressure,effectively strengthening solvency and ability to act,improving the equity commitment of large shareholders and improving the company's value Improved.But there are still many aspects that cannot be changed.For example,the effect of debt to share exchange on improving the profitability of the company is not obvious.Some problems and risks of the Huayou Kobalt industry still need to be corrected and improved in a long-term,multi-dimensional and multi-faceted way in order to achieve the ultimate goal of the long-term development of the company.In addition to the conclusion,it also gives some corresponding suggestions for the problems in the implementation process of debt restructuring,so as to provide reference and Enlightenment for other private enterprises. |
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