Case Analysis Of Bankruptcy Reorganization Of Salt Lake Company

The Enterprise Bankruptcy Law of the People’s Republic of China,which was officially promulgated on June 1,2007,clearly stipulates the contents of enterprise bankruptcy reorganization.It not only standardizes the enterprise bankruptcy reorganization behavior,but also provides more methods for the enterprise bankruptcy reorganization.The bankruptcy reorganization of enterprises is no longer limited to liquidation and reconciliation.As a newly established legal procedure in the bankruptcy law,bankruptcy reorganization system provides an opportunity for the enterprises facing financial crisis to restore their business ability and come back to life.It protects the interests of the relevant parties,and is also conducive to protecting the dominant position of the market and stabilizing social development.In recent years,some of large state-owned enterprises in China have entered bankruptcy and reorganization procedures due to mismanagement.Salt Lake Co.,Ltd.is one of typical examples.It has continued to lose money from 2017 to 2019.Only in2019,the loss was as high as 45.86 billion yuan,a record of A shares.The historical record of the loss of a listed company.Salt Lake Co.,Ltd.entered the bankruptcy and reorganization process on September 30,2019,and the bankruptcy and reorganization plan was completed on April 20,2020.The 2020 annual report shows that the net profit achieved is 2.040 billion yuan,the net profit after deducting non-recurring gains and losses is 2.148 billion yuan,and the financial situation has been fundamentally improved.This article analyzes its bankruptcy and reorganization cases in order to provide valuable reference and reference for more bankruptcy and reorganization enterprises.The research content of this article is divided into five parts.The first part is the introduction,which mainly elaborates the research background,research significance,domestic and foreign literature review,as well as research content and methods of this article.The second part is the theoretical overview of bankruptcy reorganization,expounds the concept,methods and characteristics of bankruptcy reorganization,analyzes the influencing factors of bankruptcy reorganization,the motives of bankruptcy reorganization,and the theoretical basis of bankruptcy reorganization.The third part is the introduction of the bankruptcy and reorganization about Salt Lake Co.,Ltd.It analyzes the basic situation of the company,the implementation path of bankruptcy and reorganization,and the design of bankruptcy and reorganization programs.The fourth part is analysis of the bankruptcy and reorganization about Salt Lake.Firstly,it analyzes the motivation of retaining the qualifications of the listed company,optimizing the capital structure,and improving the financial situation;Secondly,it analyzes the timing of the bankruptcy and reorganization of the company and chooses the right time."Enterprise continuity-style" reorganization methods,formulating plans to balance the interests of multiple parties of strategies;It analyzes the key factors and characteristics about the success of bankruptcy reorganization.For example,which is about the perspectives of strong government support,strategic advantages of negotiations,reasonable design of the reorganization plan,confidence of all stakeholders in the future,and the positive role of intermediary agencies;Lastly,adopts the event research method,financial indicator method,and non-financial performance method to conduct an in-depth analysis of the performance before and after bankruptcy reorganization.The fifth part is the research conclusion and enlightenment.It summarizes the viewpoints of this article and puts forward the enlightenment value of several researches.Based on the combination of theory and practice,it strives to explain the strategy and analysis of the bankruptcy and reorganization of state-owned enterprises in an easy-to-understand way with illustrations and texts.In describing the process of corporate bankruptcy and reorganization in detail.Besides,it also uses a variety of methods,and strives to organically combine the bankruptcy reorganization strategy with the comparison of the actual results before and after the reorganization,comprehensively using the event research method,financial indicator method and non-financial performance method to analyze,find the reasons behind the success of bankruptcy reorganization,extract success factors from actual cases and draw corresponding enlightenment and conclusions.While clarifying the motive of bankruptcy reorganization and the choice of strategy,we must pay more attention to the key factors and characteristics that affect the success of bankruptcy.A successful bankruptcy reorganization requires the efforts of the enterprise itself,and also the participation of numerous stakeholders to ensure the continued operation of the enterprise and enhance the profitability of the enterprise.Various stakeholders participated in the reorganization of the bankrupt enterprise from different directions,and completed the reorganization work for the enterprise in a targeted manner,protected the interests of all parties,reshaped the structure of the enterprise,and saved the financial situation caused by poor internal management.Provide new opportunity to the bankrupt company.