A Case Study Of Bankruptcy And Reorganization Of State-owned "zombie Enterprises"

Since the implementation of Supply-side Structural Reform in 2016,the process of cutting overcapacity in most industries is nearing completion,and most of the remaining ineffective capacity is concentrated in "zombie companies".On May 9,2019,the National Development and Reform Commission and other administration jointly issued the "Notice on Doing a Good Job in Resolving Excess Capacity in Key Areas in 2019",which requested that accelerating the clearance of "zombie companies" in key areas.As the worst zombie company in the steel industry,Chongqing Iron&Steel was also the first company in the steel industry to undergo bankruptcy reorganization.The assets and debts involved were huge.This thesis believes that Chongqing Iron&Steel’s bankruptcy reorganization is typical.So it takes Chongqing Iron&Steel as a case.This article analyzes the case of bankruptcy reorganization of Chongqing Iron&Steel,which mainly uses case study method and comparative analysis method for analysis.Firstly,the concepts of bankruptcy reorganization and zombie companies and related theoretical foundations were sorted out,mainly including financial crisis,bankruptcy reorganization and corporate governance.This part also determines the methods of identifying zombie companies.Secondly,the article introduces the case of bankruptcy reorganization of Chongqing Iron&Steel,and analyzed why the company chose bankruptcy reorganization.This part determines the zombie attributes before reorganization through several selected methods,and specifically describes why Chongqing Iron&Steel became a zombie company and the specific implementation plan for bankruptcy reorganization.Then it analyzes the effect of bankruptcy reorganization from the aspects of finance,corporate governance structure and re-judgment of zombie companies.This part studies whether the bankruptcy reorganization has helped Chongqing Iron&Steel to get rid of zombie through the previous analysis.Finally,it summarizes the successful experience of this bankruptcy reorganization and enlightenment on how to help other zombies to normalize.Through analysis,it was found that after the bankruptcy reorganization,Chongqing Iron&Steel changed from a zombie company to a normal company.And its finance and corporate governance aspects have improved so well in the short term.The reorganization of this company has achieved the reform of mixed ownership of state-owned enterprises,which is greatful significance to the normalization of state-owned zombie companies.The innovation of this article is that linking bankruptcy reorganization with zombie companies.And combined with the mixed ownership reform to analyze bankruptcy reorganization.It provides a solution for the normalization of state-owned zombie companies from another perspective,and it also has a certain reference role for the mixed reform of state-owned enterprises.