| In recent years,with the rapid expansion of China’s bond market,corporate bond defaults have occurred frequently,especially the bond defaults of listed companies have been increasing,and once showed an aggravating trend.As the "best private coal stock" of Ashares and the highest market value of more than 100 billion yuan,"Yongtai Energy" company defaulted on bonds in 2018 and entered the bankruptcy reorganization procedure after more than a year of "self-rescue" failure;Eventually,the bankruptcy reorganization was completed quickly and smoothly,so that the company was back on track and the performance improved.This paper expounds the basic principles of corporate bankruptcy reorganization,examines the causes and treatment of Yongtai Energy’s bond default,the process and plan of implementing bankruptcy reorganization,analyzes the changes in governance structure,long-term and short-term market reactions,and financial performance improvements before and after the completion of the company’s bankruptcy reorganization,extracts the basic enlightenment of resolving the debt default dilemma through bankruptcy reorganization,and points out the follow-up topics.The main points of the paper are:1.The trigger for Yongtai Energy’s bankruptcy reorganization is the default event of corporate bonds.Yongtai Energy passively adapted to the national supply-side structural reform policy of capacity reduction and deleveraging,and its main business was dragged down.Due to the long-term decline in coal prices and the downturn in the coal industry,the company’s profit margin declined.At the same time,Yongtai Energy’s strategic layout is too large and the investment is too aggressive,which eventually leads to the break of the capital chain and the outbreak of bond defaults.2.Bankruptcy reorganization is an effective way to resolve the debt crisis caused by Yongtai Energy.After the default of Yongtai Energy’s debt,in more than a year,it has tried various self-help measures,but has not been able to completely solve the debt problem.Finally,it entered the bankruptcy reorganization procedure and adopted the bankruptcy reorganization plan of deferred repayment of debts,debt-to-equity swaps and small cash repayment,so that the debt problem was smoothly resolved and the company’s development was also on the right track.3.Bankruptcy restructuring has had a positive impact on Yongtai Energy’s governance structure,market response and financial performance.After the bankruptcy reorganization is completed,the company adjusts the management,amends the articles of association,and optimizes the governance structure.The market is slightly pessimistic about the short-term reaction after the restructuring,but in the long run,the market has shown good expectations for the company.At the same time,the company’s financial indicators have improved,and the main business and growth ability have gradually improved.4.The key to the success of bankruptcy reorganization is an effective balance of interests.The original intention of the bankruptcy reorganization system is to "rescue enterprises with the hope of rebirth",so it is necessary to establish a reasonable screening mechanism and clarify the role of all parties in the reorganization procedure,and formulate a reasonable reorganization plan on the basis of balancing the interests of all parties to help enterprises tide over the difficulties.Through the Yongtai Energy case,the paper attempts to explore the path and experience of corporate bond default enterprises to solve problems,improve governance and improve performance by means of bankruptcy reorganization.Due to the different causes and consequences of corporate bond defaults,the adaptability or limitations of handling bond defaults by means of bankruptcy reorganization need to be specifically analyzed,and the general significance of the research conclusions of the paper still needs to be tested and observed. |
