A Case Study On Yongtai Energy’s Bond Default And Reorganization

With the development of our country’s capital market,the scale of the stock of bonds and the number of issuances have continued to increase,and corporate bond defaults have gradually become normal.How to carry out follow-up disposals after an enterprise defaults on its bonds,take effective measures to resolve debt risks,get out of financial difficulties,and return to normal business track,is the problem that defaulting companies will face and solve in the next few years.This paper selects Yongtai Energy,a privately-owned listed company that has successfully reorganized,as the research object for research,sorts out the history of Yongtai Energy’s default,analyzes the reasons for its default,and traces its disposal path after default.Divided into two stages of debt restructuring in the early stage and bankruptcy reorganization in the later stage,combined with relevant theoretical knowledge and financial index analysis method,this paper deeply discusses the implementation effect of its debt restructuring and bankruptcy reorganization plan.Finally,combined with relevant research,the successful experience of Yongtai Energy’s bond default disposal is summarized,and the research inspiration and research conclusions of this paper are drawn.Through research,it is found that Yongtai Energy’s ability to resist risks is weak due to the implementation of the diversification strategy and blind expansion,and debt default has occurred under the inducement of the external unfavorable financing environment.In the face of the debt crisis,on the one hand,it spared no effort to maintain the stability of production and operation and ensure the company’s continuous hematopoietic ability.On the other hand,a creditor committee was quickly established to gather all parties to actively study the response plan,formulate a reorganization plan that meets the actual needs of the company,and actively seek government support.A series of disposal measures taken by Yongtai Energy successfully helped the company get rid of financial difficulties,optimized its internal management process,enabled it to refocus on its main business,and improved its core competitiveness.This article summarizes Yongtai Energy’s bond default handling experience for reference by a large number of bond default companies.