Research On Debt-Equity Exchange In Bankruptcy Reorganization Procedure

Under the institutional background of my country’s supply-side structural reform,debt-to-equity swap has become a commonly used method for corporate debt liquidation and restructuring due to its ability to effectively reduce corporate leverage,adjust corporate debt structure and reduce corporate debt burden in bankruptcy and reorganization procedures.Way.In October 2016,the State Council issued the "Opinions on Actively and Steadily Reducing the Leverage Ratio of Enterprises" and the annex "Guiding Opinions on Market-Based Debt-to-Equity Swap of Banks",which further detailed the overall thinking,applicable subjects and The realization path and other content,the connotation and function of debt-to-equity swap were officially confirmed in the form of documents of the State Council.The application of debt-to-equity swap in bankruptcy reorganization procedures has become more and more widely used in practice,but in the process of its practice,many hidden problems have gradually been exposed,such as the unclear operating rules of debt-to-equity swap,and the single way of equity exit.The further development of debt-to-equity swap is seriously restricted,and these problems need to be resolved institutionally.Based on this,this paper chooses to study the legal issues of debt-to-equity swap in bankruptcy reorganization procedures.This article has four parts:The first part defines the concept of debt-to-equity swap system in bankruptcy reorganization procedures,which mainly refers to the legal act of converting creditors’ claims into equity in bankruptcy and reorganization enterprises in bankruptcy and reorganization procedures.The equity swap does not violate the principle of capital enrichment and other conditions to affirm the feasibility of the debt-to-equity swap system in bankruptcy and reorganization procedures;The second part,taking Poland,the United States and South Korea as examples,compares and analyzes the two models of foreign bank-led debt-to-equity swap and asset management company-led debt-to-equity swap.Make full use of the market mechanism,adopt pilot promotion and other viewpoints that my country can consider and learn from;The third part sorts out and summarizes the problems existing in our country’s current legislation and practice.In this part,by sorting out the legal rank regulations in the field of debt-to-equity swap in my country’s bankruptcy reorganization procedures,and analyzing the practice cases of debt-to-equity swaps such as Northeast Special Steel and Lutianhua,it points out the existence of debt-to-equity swaps in my country’s bankruptcy and reorganization procedures.For example,the scope of application and applicable rules of debt-to-equity swap are still unclear in relevant laws and regulations,and the applicable rules of the court’s compulsory approval right are unclear;The fourth part,put forward the perfect suggestions for the problems pointed out in the third part.It focuses on improving the handling rules of secured claims,establishing a voting mechanism specially used when applying the debt-to-equity swap system in bankruptcy reorganization procedures,restricting the court’s application of the compulsory approval system,and improving the debt-to-equity swap exit mechanism.