Study On The Disposal Of Credit Debt Default In China

Since the default of 11 Chaori bonds in 2014 broke the myth of rigid payment of credit bonds in China,the default events in the bond market have been increasing.By the end of 2021,a total of 906 credit bonds occurred in China’s bond market default,involving 204 defaulting subjects,the liquidated damages reached about 867 billion yuan,the number of defaults and liquidated damages increased.In this context,the study of credit debt after-default disposal mode is particularly important,which is of great significance to improve the disposal efficiency of credit debt default,protect the rights and interests of investors,and promote the more stable and orderly development of the bond market.This paper will select the default credit debt by the end of 2021 as the research sample to conduct a systematic analysis of the default disposal methods of credit debt.Firstly,the status quo of the default disposal method is statistically analyzed from the dimensions of time,bond subject attributes,characteristics of defaulted bonds,etc.Secondly,the implementation effect of the disposal method is studied from the perspective of creditors and debtors.Finally,the influencing factors and related problems in the implementation of the disposal method are analyzed and the optimization suggestions are put forward.The disposition of credit debt default in China presents the following characteristics: First,the disposition of credit debt default in China is mainly bankruptcy reorganization and debt restructuring in recent years;Second,the proportion of local state-owned enterprises and private enterprises using judicial procedures is higher,and the proportion of central enterprises using independent consultation is higher.Third,in the developed eastern region,the default credit debt through independent negotiation is slightly more than the judicial procedure,while in other regions,the judicial procedure is more.Fourth,when the amount of breach is small,both independent negotiation and judicial procedure are applicable,and when the amount of breach is large,independent negotiation is seldom used.Fifthly,the default caused by the enterprise’s own operation problems mainly adopts self-raised funds,bankruptcy reorganization and other disposal methods,while the default caused by the external economic environment mainly adopts debt restructuring.From the perspective of the disposal effect of default of credit debt,the implementation effect of independent negotiation is generally better than that of judicial procedure for creditors,but the disposal and recovery of default credit debt in China is not ideal,and it is difficult to protect the rights and interests of creditors after default.For debtors,self-financing in self-negotiation mode may bring some negative effects on debtors,while third-party compensation and debt restructuring are more favorable to debtors.In judicial procedure,bankruptcy liquidation is disadvantageous to the debtor,while bankruptcy reorganization is beneficial to the debtor to achieve short-term profits.The impact of bankruptcy reconciliation and claim litigation on the debtor depends on the subsequent negotiation plan of both parties.To solve the default credit debt disposal method in the process of assets difficult valuation,limited financing channels after default,lack of professional disposal institutions,deferred payment uncertainty,our country should use a variety of valuation method,promote credit risk slow release tools to broaden the financing channels,guide production management company to participate in default bond disposal,establish the debtor constraint mechanism.