Research On The Implementation Path And Effect Of Bankruptcy Reorganization Of Lifan Technology

Since the formal implementation of bankruptcy reorganization system in 2007,bankruptcy reorganization as a means of self-rescue has brought hope to many distressed enterprises on the edge of bankruptcy.Successful bankruptcy reorganization can help enterprises get rid of financial difficulties,restore production and operation capacity,and protect the interests of stakeholders.However,there are also a large number of enterprises failed to complete the restructuring and exit the market as planned.For listed debt enterprises,their bankruptcy reorganization involves a large number of stakeholders,and whether it can be promoted smoothly and achieve positive results is affected by various comprehensive factors.In addition,once the listed company goes into bankruptcy liquidation,the social negative impact is great.Therefore,for listed debt enterprises in financial distress,how to form the driving force of development through bankruptcy reorganization and achieve sustainable operation to reduce the negative impact on society is a question worth exploring.The automotive manufacturing industry has high debt industry characteristics.Under the dual impact of industry electrification transformation and upgrading and market downturn,many traditional car companies have a tight capital chain.Lifan Technology’s two strategic transformation effects are not good,and the product profitability is poor,resulting in low hematopoietic capacity of the enterprise.Under this circumstances,the company’s short debt long investment adopts radical debt expansion,the capital chain is broken and unable to claim debt,and finally the enterprise chooses to reorganize.The cause of bankruptcy and reorganization of Lifan Technology is typical and representative in the industry.Therefore,this article selects Lifan Technology reorganization cases for research.This paper first introduces the background and significance of the case study,and reviews the relevant literature of bankruptcy reorganization at home and abroad,and briefly summarizes the writing ideas and methods.In the theoretical part of this paper,the concept and characteristics of bankruptcy reorganization are expounded,and the relevant theories and the path of value creation of bankruptcy reorganization are discussed,which provides a theoretical basis for the study of the path of reorganization of Lifan Technology.After explaining the operating conditions and reasons of Lifan Technology before bankruptcy reorganization,the reorganization process of Lifan Technology is sorted out.In the part of case analysis,this paper summarizes the fundamental motivation of its bankruptcy reorganization,deeply explores the implementation path of bankruptcy reorganization,and summarizes the characteristics of the reorganization implementation process of Lifan Technology.On this basis,the comprehensive market reaction,financial performance,stakeholders and bankruptcy risk of the reorganization of the plan to achieve the effect of objective evaluation and verification,and to draw the corresponding conclusions and enlightenment.Through the research,it can be concluded that:(1)Lifan Technology got rid of its financial predicament through restructuring.Before the restructuring,Lifan Technology was on the verge of bankruptcy.Through restructuring,it realized the optimization of its internal governance structure,the adjustment of its business strategy and effectively alleviated the financial pressure.(2)The bankruptcy reorganization of Lifan Technology has achieved positive results,significantly improving the market reaction and short-term financial performance,effectively reducing the risk of re-bankruptcy and safeguarding the interests of stakeholders.(3)The key to the bankruptcy reorganization of Lifan Technology is "appropriate".Whether it is the early selection of restructuring investors,or according to the restructuring plan formulated by restructuring investors,they fully consider their own situation and the advantages of restructuring parties,so as to learn from each other and realize the innovation of debt enterprises.Therefore,this article puts forward the relevant enlightenment of enterprise bankruptcy reorganization.In the process of restructuring,first of all,the government and relevant departments to guide and support market-oriented restructuring;Secondly,all stakeholders should be balanced to ensure the promotion of reforming procedures and improve the efficiency of reforming.Thirdly,we should recognize the essence of bankruptcy reorganization,avoid short-sightedness,and improve the sustainable operation ability of enterprises.Finally,it is necessary to choose the participants of reforming reasonably and improve the quality of reforming.