Case Study On Bankruptcy And Reorganization For HNA Group

Reform and opening up have created very good development opportunities for Chinese enterprises.With the rapid development of China’s economy,many large enterprises have also grown.However,some enterprises have deviated from the preset development track in the process of development and blindly pursued expansion of their own scale.When it comes to the dilemma of bankruptcy and reorganization,the paper will use HNA Group as a case to analyze the reasons leading to its bankruptcy and reorganization,summarize the lessons that are worth learning,and discuss the methods and results of the reorganization.The thesis uses literature research,case analysis,and financial analysis to analyze the reasons,methods and effects that led to the bankruptcy and reorganization of HNA Group.The paper first sorts out the research results of bankruptcy and reorganization,and sorts out the concepts and methods related to bankruptcy and reorganization;then introduces the case of HNA Group,which is the fourth largest aviation company in China and an important taxpayer in Hainan Province,2010-2017 The frequent diversification of mergers and acquisitions at home and abroad during the years has allowed HNA’s asset scale to reach new highs and become a super-large enterprise involved in 22 industries,ranking170 th in the world’s top 500,but eventually went bankrupt and reorganized;The reasons,methods and results of the bankruptcy and reorganization of HNA Group are analyzed,and the reasons for the bankruptcy and reorganization are analyzed.The reasons for the bankruptcy and reorganization are excessive diversified mergers and acquisitions,excessive financial leverage,invalid governance mechanism and the value of rescue.The methods of bankruptcy and reorganization include adjustment of capital contribution.Introduce strategic investors,adjust the debt repayment plan to reduce the debt level,establish a trustee plan,and the result of bankruptcy reorganization is a change in the ownership structure,a reduction in debt level,business recovery,and a smooth transition of related parties;finally,four enlightenments are summarized.And three suggestions are put forward for different subjects.The enlightenment is to avoid excessive diversification,rational use of financial leverage,establish effective governance mechanisms and focus on enhancing the value of the enterprise.The suggestion is that enterprises should focus on healthy development methods and relevant government departments.Risk supervision must be strengthened,and small and medium investors must invest rationally.