Research On The Restructuring Modle Of Financial Distressed Companies

Since the 19 th National Congress of the CPC,the Prevention and mitigation of financial risks has become an important issue,but in recent years,the macro-economic downturn superimposed on the impact of the covid-19 pandemic,the general environment,enterprises are often in trouble.Financial distress not only endangers itself,but may even spread risks to the financial market.Therefore,financial distress companies are regarded as one of the sources of uncertainty and instability in the financial environment.Based on the data of St listed companies in the 2021 of 2008-2021,this thesis constructs a model of restructuring choice and a model of restructuring performance for financially distressed companies,assist the financial distress company to choose the reorganization plan,and take Evergrande Group as a case,analyze the background and internal and external reasons of its predicament,so as to design the reorganization plan.The results show that:(1)Evergrande needs asset restructuring,equity restructuring and debt restructuring;(2)corporate performance improves significantly after restructuring;(2)the effect of asset restructuring on short-term performance is better than that of long-term performance;(3)both equity restructuring and debt restructuring can significantly improve short-term performance;(4)hybrid restructuring can significantly improve the long-term performance of the company and the effect is better than the single restructuring,the number of restructuring and short-term performance is directly proportional;(5)Evergrande Group can adopt a mixed restructuring plan which includes asset divestment,equity restructuring,debt restructuring,war investment and capital injection,as well as government support and financing help.Based on the above research conclusions,this thesisr puts forward the following suggestions for financial distress companies:(1)avoid blind diversification and focus on core business;(2)construct effective internal capital control mechanism and strengthen cash flow management;(3)optimize financing methods;Improve the capital structure;(4)according to their own situation,design a reasonable restructuring program.