A Case Study On Debt Restructuring Of Pangda Group

With the continuous deepening of economic globalization,various industries are revitalizing in fierce competition.Taking the huge automobile trading distribution group as an example,as the first automobile trading group in China to achieve A-share listing through IPO,it has maintained a high-speed growth trend since its establishment in 2003,making positive contributions to the development of the national economy.However,due to the unique nature of the automobile distribution industry and fierce market competition,many automobile distribution enterprises in China have experienced financial chain fractures,difficulty in repaying debts,and even reached the stage of bankruptcy liquidation and debt restructuring.With regard to debt restructuring,compared with European and American countries,China has a relatively short research period and the theory still needs to be improved.However,it is not difficult to find that compared with bankruptcy liquidation,debt restructuring has a shorter duration and less losses,which can maximize the interests of creditors and creditors,and also bring new opportunities to enterprises.Therefore,many companies facing debt crisis,especially ST and *ST,Often,debt restructuring methods are used coincidentally in the hope of improving the situation of debt tension and financial difficulties.This thesis studies the debt restructuring activities of huge groups that are also facing serious debt crisis,hoping to enrich the relevant theories of debt restructuring in China,and also provide reference for other companies in the same industry facing the same situation.In this thesis,literature research method,case study method,event study method and financial index analysis method are adopted.On the basis of sorting out the research status of debt restructuring at home and abroad and in-depth understanding of relevant theories of debt restructuring,the debt restructuring activities of Da Feng Group are studied in case.First,the overall operation of Pang Da Group and debt restructuring events are introduced in detail to explore the motivation behind the debt restructuring of Pang Da Group.Secondly,from the four aspects of financial performance,non-financial performance,market reaction and economic added value,this thesis focuses on analyzing the economic consequences caused by the debt restructuring of Pang Da Group,and combines the above motivation of debt restructuring with the economic consequences to comprehensively analyze the changes in the company’s financial performance,market reaction and corporate value before and after the debt restructuring.This thesis finds that after the company’s debt restructuring,the indicators of its debt paying ability,profitability,development ability and operation ability have been significantly indicated compared with those before the restructuring,and market participants have positive expectations on the debt restructuring of Pang Da Group in both short and long term,and the economic value of the company has also been increased to some extent after the restructuring.But this increase in value has not been sustained.Finally,based on the summary of the research on the debt restructuring event of the company in this case,it is proposed that the company should adjust its business structure and strengthen internal control.The research and expectation of this thesis can help Pang Da Group and other traditional Car dealership have a deeper understanding of debt restructuring,and can also effectively avoid debt distress to some extent in the future operation.