Reflections and improvements on the debt-to-equity swap system in corporate bankruptcy reorganization
ZHANG Kai
DING Baoguo
Abstract：Debt-for-equity swap is an important part of the toolbox for corporate bankruptcy and reorganization.An ideal debt-for-equity swap system design can effectively improve the success rate of bankruptcy and reorganization and greatly optimize the efficiency of market resource allocation.Properly using the debt-for-equity swap system is an effective way to save distressed enterprises.However,there are still many theoretical issues to be clarified in the current bankruptcy and reorganization debt-for-equity swap system,and the system design also has problems such as limited application,unclear implementation mechanism and implementation effect.Improving the debt-to-equity swap system can be approached from two aspects:on the one hand,consideration should be given to expanding the participating entities and specific application methods of debt-to-equity swap in restructuring;on the other hand,it is necessary to further clarify the implementation mechanism and effectiveness of debt-to-equity swap,so that the system can play an important role in rescuing restructuring enterprises.
Keywords：bankruptcy reorganizationdebt-to-equity swapreorganization plancompulsory approval
Publication Date：2025-01-29
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：9( 9-17 )