Research On The Reasons And Disposal Scheme Of YH Company’s Debt Default

In recent years,with the advance of financial market reform,the decisive role of the market has been strengthened,and more and more enterprises have fallen into the debt default crisis due to poor management and other problems.The amount of default in China’s bond market and the number of default enterprises have been increasing.At the same time,due to The State Council’s regulation of local government debt,more and more state-owned enterprises have lost their implicit guarantee and fallen into the debt default crisis.This article selects the typical state-owned enterprise debt default YH company as an example,through the analysis of the reasons of the default,the problems existing in the disposal plan and the reasons of default,that the company because of the economic environment tightening,unreasonable expansion at the same time,the blind borrowing,makes the debt ratio rising,at the same time as did not achieve expected earnings,after the completion of the project instead of losses,Drag the main business from surplus to loss,a huge amount of debt due,unable to repay,implicit guarantee failure,debt default.For YH company defaults,active,put forward the stripping non-performing assets,liabilities,debts into shares,such as disposal scheme,lien by spinning off bad assets,profit,the profit of business through debt lien and alleviate the pressure of the short-term debt service,strive for profit time,through the debt stock,reduce debt scale,adjust the structure of capital,many measures simultaneously,In the end,the overall profits of the enterprise and the orderly repayment of debts are realized.However,in the design of the restructuring plan,the interests of creditors represented by banks are infringed due to the conflicts between creditors,local governments and shareholders and the low participation of creditors.At the same time,due to the information disclosure and insider trading problems in the declaration of bankruptcy reorganization,the interests of minority shareholders are harmed.Through the analysis of the case of YH Company,this paper puts forward corresponding suggestions for the government,enterprises and creditors.For the government,it is suggested to break the practice of implicit guarantee,guide state-owned enterprises to use market-oriented methods to resolve debt risks,and strengthen the supervision of financial intermediaries to eliminate information asymmetry.It is suggested that enterprises should construct scientific decision-making procedure to protect the interests of creditors and minority shareholders and maintain reasonable capital structure.It is suggested that creditors strengthen supervision and investigation before and after borrowing,establish a risk early-warning mechanism,and take active actions when default occurs to protect their legitimate rights and interests.