Salt Lake Share Bankruptcy Reorganization And Its Financial Performance Research

Due to the continuous and vigorous development of China’s capital market,the number of listed companies is also increasing,and many problems have arisen in the sustainable development of some listed companies.In China’s traditional bankruptcy and liquidation theory,it is advocated that most companies will go bankrupt Liquidation,or even liquidation and reorganization.The traditional bankruptcy liquidation mechanism in China has long been unable to meet the vigorous development needs of more enterprises.Until2007,the current "Bankruptcy Law" was enacted.This law gave some companies that are about to go bankrupt hope of rebirth,but also brought corresponding challenge has come.Due to the different methods of bankruptcy and reorganization chosen and the differences in the industries in which the enterprises operate,the reorganization effects of enterprises vary.Most of these companies did not achieve the expected results after completing bankruptcy and reorganization,or they solved the symptoms rather than the root causes.This paper selects the bankruptcy and reorganization case of ^*ST Salt Lake for research.As an old state-owned enterprise,ST Salt Lake has a negative profitability from2016 to 2019 due to the combined influence of various industrial influences and the expansion of enterprise scale.The decline in profitability coupled with the severe financial crisis,in 2019,^*ST Salt Lake was applied for bankruptcy and reorganization by the debtor and was approved by the local court,and officially entered the bankruptcy and reorganization stage.In the reorganization plan,^*ST Salt Lake has adopted measures such as debt restructuring and adjustment of business strategies,hoping to regain a new life.After the successful implementation of the reorganization plan,^*ST Salt Lake improved its operating conditions and reduced its asset-liability ratio,and in the company’s financial report for the second year after the reorganization was completed,^*ST Salt Lake reversed the loss and began to make a profit.Re-listed on August 10,2021.^*ST Salt Lake has been successfully reorganized with good results,which proves the effectiveness of the local government and relevant departments’ active guidance and enterprise reorganization plan.This paper will use the EVA index method and the event research method to compare and analyze the performance of ^*ST Salt Lake before and after the reformation,so as to objectively evaluate the reformation effect and test the reformation plan.The research results show that when a company is in trouble,scientific bankruptcy reorganization can not only effectively help companies on the verge of bankruptcy to quickly get rid of business difficulties and improve their operations,but also improve company performance in the short term.^*ST Salt Lake bankruptcy reorganization The successful experience can not only provide a basis for enterprises to further improve the theory of bankruptcy reorganization,but also provide some experience reference for listed companies in the same situation when they go through bankruptcy and reorganization.